Binance Launches Principal-Protected RWUSD with 4.2% APR Tied to U.S. Treasuries

Binance has launched RWUSD, a principal-protected yield-bearing product offering up to 4.2% annual percentage rate (APR) to users. The product, introduced in late July 2025, is benchmarked against tokenized U.S. Treasury bills and other real-world assets (RWAs), marking a strategic expansion of Binance’s Earn suite. RWUSD allows stablecoin holders to earn daily compounding rewards while maintaining a 1:1 redemption rate to USDC. Users can subscribe using USDT or USDC, with redemption options including a standard three-day process with a 0.05% fee or an instant withdrawal option at 0.1% [1].

The structure of RWUSD emphasizes stability and accessibility, distinguishing it from traditional stablecoins. Unlike tokenized RWAs or on-chain assets, RWUSD functions as a ledger-based record within the Binance ecosystem, tracking user subscriptions and accrued rewards. It is not transferable outside the platform, centralizing liquidity management. Binance has also integrated RWUSD as collateral for VIP Loans, enhancing its utility for capital efficiency [2]. The projected 4.2% APR is tied to the performance of tokenized U.S. Treasuries, though the platform clarifies the rate is not guaranteed and may fluctuate [3].

Jeff Li, Binance’s VP of Product, emphasized RWUSD’s alignment with the platform’s mission to bridge traditional finance and crypto. The product builds on prior successes like BFUSD and LDUSDT, which also leverage RWAs for yield generation. With over 11 million users benefiting from Binance’s Earn programs, RWUSD aims to further diversify user engagement [4]. However, its principal protection and yield mechanisms rely entirely on Binance’s internal infrastructure, as the product is not backed by third-party audits or independent asset pools.

Key features include flexible subscription limits (up to $5 million) and daily reward distributions, reducing exposure to market volatility. Users can withdraw funds after three days or immediately, albeit with a fee. This flexibility targets both retail and institutional investors seeking stable returns without long-term capital lockups [5]. The product’s linkage to U.S. Treasuries reflects broader industry trends toward integrating traditional financial instruments into crypto ecosystems, though scalability remains uncertain.

RWUSD’s design as a platform-specific tool limits its external adoption but mitigates counterparty risks. Analysts note that similar products, such as algorithmic stablecoins, have faced challenges during market stress, though RWUSD’s direct connection to U.S. Treasuries offers a perceived stability advantage [7]. The redemption terms and collateralization rules underscore its role in Binance’s internal systems, prioritizing operational control over broader market exposure [6].

Binance’s focus on RWA integration aligns with a sector projected to grow as regulatory clarity emerges in crypto markets. By leveraging its existing user base and liquidity pools, the platform aims to bridge traditional finance and blockchain ecosystems. However, maintaining consistent yields amid shifting interest rates and macroeconomic conditions will determine RWUSD’s long-term success.

Source:

[1] [Binance Introduces RWUSD With 4.2% APR Tied to Tokenized Treasuries] (https://coincentral.com/binance-introduces-rwusd-with-4-2-apr-tied-to-tokenized-treasuries/)

[2] [Binance Launches Novel Earn Product RWUSD: Details] (https://u.today/binance-launches-novel-earn-product-rwusd-details)

[3] [Binance Launches Principal-Protected RWUSD with 4.2% APR] (https://www.ainvest.com/news/binance-launches-principal-protected-rwusd-4-2-apr-backed-treasuries-2507)

[4] [Binance Launches RWUSD Offering 4.2% APR, Ledger-Based Collateralized USD-Pegged Stablecoins] (https://www.ainvest.com/news/binance-launches-rwusd-offering-4-2-apr-ledger-based-collateralized-usd-pegged-stablecoins-2507/)

[5] [Binance Launches RWUSD Yield Bearing Stablecoin-Like Product Offering 4.2% APR] (https://cryptoslate.com/binance-launches-rwusd-yield-bearing-stablecoin-like-rwa-product-offering-4-2-apr/)

[6] [Binance Launches Novel Earn Product RWUSD: Details] (https://u.today/binance-launches-novel-earn-product-rwusd-details)

[7] [Binance Launches RWUSD Offering 4.2% APR, Ledger-Based Collateralized USD-Pegged Stablecoins] (https://www.ainvest.com/news/binance-launches-rwusd-offering-4-2-apr-ledger-based-collateralized-usd-pegged-stablecoins-2507/)