Hassan Maishera
Binance, the world’s leading blockchain ecosystem behind the largest cryptocurrency exchange by trading volume and user base, announced on Monday that it has launched RWUSD.
RWUSD is a principal-protected Binance Earn product backed by the strength of the Binance ecosystem and which aims to benchmark returns in high-quality Real-World Assets (RWA) such as tokenized U.S. Treasury Bills.
In a press release shared with Cryptowisser, Binance said users can enjoy market-competitive and relatively stable rewards with RWUSD subscriptions. Binance Earn products are designed to make crypto more rewarding and demonstrate Binance’s commitment to increasing the freedom of money when many are still underserved in the traditional financial system.
According to Binance, RWUSD can be redeemed 1:1 to USDC, and users may subscribe to RWUSD with USDT or USDC. Furthermore, rewards accrue to users’ subscriptions in RWUSD and are distributed daily, and users have the option to redeem instantly or T+3. RWUSD can be utilized as collateral for Binance VIP Loans and will continue to accrue rewards for users, making it another capital-efficient product on the Binance platform.
RWUSD joins other principal-protected, reward-generating products with multiple utilities issued by Binance, including BFUSD and LDUSDT. Similar to BFUSD and LDUSDT, RWUSD is a record of a user’s subscription and rewards in the product.
However, Binance clarified that RWUSD is not itself a stablecoin, security, fund, tokenized RWA, or on-chain asset, and it doesn’t represent any user right to any RWAs. It cannot be traded between users or transferred out of the Binance platform.
While commenting on this latest development, Jeff Li, VP of Product at Binance, stated that,
“RWUSD is our newest Earn product and offers users a way to enjoy relatively stable rewards at market-competitive rates. Binance Earn has helped over 11 million users accrue earnings and savings with their crypto assets, and we will continue to make crypto more rewarding and engaging for users. Binance is committed to increasing the freedom of money, and the community’s positive feedback for BFUSD and LDUSDT tells us we are on the right track in developing RWUSD.”
RWUSD is currently not available to users in the United States.
Binance pointed out that RWUSD offers users the following benefits:
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Competitive and Stable Rewards: RWUSD is backed by the Binance ecosystem and aims to benchmark returns in Real-World Assets, including tokenized US Treasury Bills, helping ensure that returns remain relatively stable and competitive over time. The projected APR at launch is up to 4.2%.
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Large Personal Quotas at full APR: Users can subscribe with amounts up to $5 million while enjoying a consistent APR, allowing them to maximize their earnings without concern for reduced rates.
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Collateral Utility: RWUSD held in the user’s Spot Account can be used as collateral for the Binance VIP Loan while continuing to accrue rewards simultaneously.
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Daily Reward Accrual: RWUSD accrues daily rewards, which are distributed each day directly to the user’s Spot Account in the form of RWUSD.
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Option of Standard and Fast Redemption: Users have the option of Standard Redemption (3 days at 0.05% redemption fee) and Fast Redemption (instant at 0.1% fee). Users can also enjoy a free quota of Fast Redemption.
What are the differences between RWUSD, BFUSD, and LDUSDT?
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Source of Yield |
Mainly from Binance operation and tokenized US Treasury Bills / RWAs |
Mainly from Funding Fee Income and Staking Rewards |
From Simple Earn USDT Flexible Product which receives yields from lending services including Binance Loans and Margin |
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Value (Principal protected) |
The value of RWUSD is 1:1 to eligible USD stablecoins |
The value of BFUSD is 1:1 to eligible USD stablecoins |
LDUSDT is reward-bearing. The value of 1 LDUSDT is 1 USDT plus the accumulated rewards. You may refer to the exchange rate on the product page by clicking [Swap] |
|
Reward distribution |
Rewards are distributed in RWUSD to your Spot Account daily |
Rewards are distributed in USDC to your Futures Account daily |
Rewards are accumulated in the increasing value of LDUSDT |
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Fee Structure |
No subscription fee |
No subscription fee Redemption fee applicable |
No subscription or redemption fee |
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Use cases |
It can be used as collateral for Binance VIP Loan |
It can be used as margin for trading Futures |
It can be used as margin for trading Futures |
Binance is a leading global blockchain ecosystem behind the world’s largest cryptocurrency exchange by trading volume and registered users. Binance is trusted by more than 280 million people in 100+ countries for its industry-leading security, transparency, trading engine speed, protections for investors, and unmatched portfolio of digital asset products and offerings from trading and finance to education, research, social good, payments, institutional services, and Web3 features.
Binance is devoted to building an inclusive crypto ecosystem to increase the freedom of money and financial access for people around the world with crypto as the fundamental means.
