7 hours ago
Binance has launched RWUSD, a caller principal-protected yield product offering up to 4.2% APR benchmarked against tokenized U.S. Treasury bills and different real-world assets.
The offering aims to proceed Binance’s program to incorporated off-chain fiscal instruments into its Earn merchandise suite portion avoiding nonstop vulnerability to tokenized assets.
Users tin subscribe to RWUSD utilizing stablecoins similar USDT oregon USDC, depending connected determination availability. Upon subscription, Binance issues RWUSD successful a 1:1 ratio to a user’s Spot Account, with nary associated subscription fees.
Redemption is lone permitted successful USDC astatine the aforesaid 1:1 ratio, careless of the archetypal stablecoin used. Fast Redemption and Standard Redemption options transportation fees of 0.1% and 0.05% respectively, though Binance whitethorn periodically waive Fast Redemption fees astatine its discretion.
RWUSD is not a stablecoin
According to Binance, RWUSD is neither a stablecoin nor a tokenized asset, nor does it correspond ownership successful immoderate RWA. Instead, it functions arsenic a ledger introduction reflecting a user’s main and accrued rewards wrong Binance’s infrastructure.
RWUSD cannot beryllium traded, transferred to different accounts, oregon withdrawn on-chain. However, it whitethorn beryllium utilized arsenic collateral for Binance VIP Loans, providing output continuity adjacent erstwhile leveraged wrong Binance’s indebtedness ecosystem.
Rewards accrue regular and are distributed successful RWUSD straight to the user’s Spot Account. Yield rates are determined astatine Binance’s discretion and benchmarked against instruments specified arsenic tokenized U.S. Treasury bills. The APR is level crossed each deposit sizes, with nary tiered rates oregon limits connected subscription amounts up to $5 cardinal per user.
RWUSD begins accruing rewards the time aft subscription, based connected the lowest regular equilibrium held. Distribution occurs 2 days aft the subscription, and rewards are lone issued for balances supra 0.01 RWUSD. Redemption timing varies by method: Fast Redemption delivers USDC instantly, portion Standard Redemption returns assets to users by 10:00 UTC connected the 3rd time pursuing the request.
Although RWUSD is benchmarked to yields derived from tokenized RWAs, Binance explicitly clarifies that it does not represent a tokenized security, fund, oregon transferable on-chain asset. The steadfast emphasizes that users person nary nonstop assertion to the underlying RWAs oregon the income generated.
RWUSD is unavailable to U.S. persons and taxable to alteration successful output rates, subscription caps, and redemption conditions, per Binance’s interior policies.
The product’s backing stems from gross streams wrong Binance’s ecosystem and prime off-chain assets, not from on-chain collateral oregon third-party custodians.
RWUSD remains confined wrong Binance’s closed-loop system, aiming to entreaty to yield-seeking users with precocious subscription thresholds and collateral options, without straight engaging with tokenized securities markets.
The station Binance launches RWUSD output bearing stablecoin-like merchandise offering 4.2% APR from RWAs appeared archetypal connected CryptoSlate.
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