Binance Launches RWUSD Backed by Tokenized U.S. Treasuries Offering 4.2% APR

Binance Earn is set to introduce a new principal-protected product, RWUSD, backed by tokenized U.S. Treasuries, offering users an annual percentage rate (APR) yield of up to 4.2%. The product will launch on July 28, 2025, and allows subscriptions using stablecoins such as USDT and USDC at a 1:1 ratio, with no subscription fees charged by the platform [1]. RWUSD tokens are non-transferable and can only be redeemed within Binance’s ecosystem, with payouts made in USDC regardless of the stablecoin used for initial deposits [1]. The offering is designed to provide enhanced security and higher returns compared to traditional stablecoin savings products, which typically yield less than 2% APR [1].

The product functions by converting deposited stablecoins into RWUSD tokens internally, maintaining a 1:1 value ratio. Users can redeem their holdings via two modes—Fast Redemption and Standard Redemption—though transfers between users are not permitted, distinguishing RWUSD from tradable stablecoins [1]. The yield is derived from the performance of tokenized U.S. Treasury Bills and is credited in USDC upon redemption, with a maximum annual return of 4.2% [1]. Binance positions RWUSD as a bridge between traditional finance and decentralized platforms, leveraging tokenized real-world assets (RWAs) to attract investors seeking secure, high-yield opportunities [1].

The launch underscores growing interest in tokenizing real-world assets, a trend that could enhance liquidity and security in crypto markets. By integrating U.S. Treasury-backed products, Binance aims to expand its Earn platform’s offerings with principal-protected alternatives. Analysts note that RWUSD’s structure—combining real-asset collateralization with crypto accessibility—aligns with broader industry efforts to blend traditional and digital finance [1]. The absence of subscription fees and the emphasis on principal protection further differentiate RWUSD from conventional stablecoin savings accounts [1].

Users must redeem their holdings directly through Binance, with no external trading capabilities for RWUSD tokens. The product’s design prioritizes safety, ensuring that investments are collateralized by tokenized U.S. Treasuries rather than fiat reserves, as is common with traditional stablecoins [1]. This approach addresses concerns around liquidity and transparency in decentralized finance (DeFi) while offering competitive returns. The 4.2% APR is particularly attractive in a low-yield market, though investors should note that actual returns depend on the underlying Treasury Bill performance [1].

The introduction of RWUSD reflects Binance’s strategic push to innovate its Earn suite, targeting users who seek both security and yield. By leveraging tokenized U.S. Treasuries, a trusted financial instrument, the platform aims to establish a benchmark for future RWA products. As tokenization gains traction, RWUSD may catalyze further adoption of real-world asset-backed crypto offerings, reshaping how investors access traditional markets through decentralized platforms [1].

Source: [1] [Binance Earn May Launch RWUSD Backed by Tokenized U.S. Treasuries Offering Up to 4.2% APR] [https://en.coinotag.com/binance-earn-may-launch-rwusd-backed-by-tokenized-u-s-treasuries-offering-up-to-4-2-apr/]