Binance Introduces Principal-Protected RWUSD with 4.2% APR, Benchmarking Real-World Assets

Binance, the world’s largest cryptocurrency exchange, has introduced a principal-protected Binance Earn product called RWUSD, offering users an annual percentage return (APR) of up to 4.2%. The product, announced on July 28, is designed to benchmark returns against tokenized real-world assets such as U.S. Treasury Bills. Users can subscribe to RWUSD using USDT or USDC and redeem it at a 1:1 ratio for USDC. Rewards are distributed daily to spot accounts, with redemption options including instant withdrawal (with a 0.1% fee) or a three-day settlement period (with a 0.05% fee). The product also functions as collateral for Binance VIP Loans while continuing to generate rewards [1].

RWUSD joins Binance’s existing stable-yield offerings like BFUSD and LDUSDT, though it is explicitly defined as a record of user subscriptions and rewards rather than a stablecoin, security, fund, or tokenized real-world asset. It cannot be traded between users or transferred off the platform, according to the company. Jeff Li, VP of Product at Binance, highlighted the product’s alignment with the exchange’s mission to enhance crypto asset utility. “RWUSD offers users a way to enjoy relatively stable rewards at market-competitive rates,” he stated, adding that over 11 million users have already engaged with Binance Earn products [1].

Personal investment quotas are capped at $5 million to maintain access to the full APR, with users receiving a free allocation for instant redemptions. The product’s structure aims to balance flexibility and cost efficiency, catering to both short-term liquidity needs and long-term yield strategies. By allowing RWUSD to serve as collateral for VIP Loans, Binance further integrates its ecosystem, enabling users to leverage their holdings without sacrificing liquidity.

The 4.2% APR is a competitive benchmark within the crypto sector, particularly for products offering principal protection. This feature addresses a key pain point for investors wary of crypto market volatility, potentially broadening the appeal to a more risk-averse audience. However, the product’s success hinges on user confidence in Binance’s operational transparency, as the exchange does not disclose specific collateral details backing the RWUSD yield. The platform’s track record with BFUSD and LDUSDT, both of which have received positive community feedback, may bolster trust in the new offering [1].

RWUSD reflects Binance’s broader strategy to bridge traditional finance and decentralized finance (DeFi) by leveraging real-world assets. While the APR is fixed at 4.2%, the product’s reliance on tokenized U.S. Treasury Bills underscores its alignment with conventional financial benchmarks. This approach may attract users seeking alternatives to traditional low-yield savings accounts while mitigating the risks associated with crypto market fluctuations.

Source: [1] [title: Binance Launches RWUSD Earn Product with 4.2% APR] [url: https://finbold.com/binance-launches-rwusd-earn-product-with-4-2-apr/]