Binance has launched RWUSD, a brand new principal-protected yield product providing as much as 4.2% APR benchmarked in opposition to tokenized U.S. Treasury payments and different real-world property.
The providing goals to proceed Binance’s plan to include off-chain monetary devices into its Earn product suite whereas avoiding direct publicity to tokenized property.
Customers can subscribe to RWUSD utilizing stablecoins like USDT or USDC, relying on regional availability. Upon subscription, Binance points RWUSD in a 1:1 ratio to a consumer’s Spot Account, with no related subscription charges.
Redemption is simply permitted in USDC on the similar 1:1 ratio, whatever the preliminary stablecoin used. Quick Redemption and Commonplace Redemption choices carry charges of 0.1% and 0.05% respectively, although Binance could periodically waive Quick Redemption charges at its discretion.
RWUSD will not be a stablecoin
Based on Binance, RWUSD is neither a stablecoin nor a tokenized asset, nor does it characterize possession in any RWA. As an alternative, it features as a ledger entry reflecting a consumer’s principal and accrued rewards inside Binance’s infrastructure.
In contrast to stablecoins, RWUSD can’t be traded, transferred to different accounts, or withdrawn on-chain. Nonetheless, like stablecoins, it might be used as collateral for Binance VIP Loans, offering yield continuity even when leveraged inside Binance’s mortgage ecosystem.
Rewards accrue day by day and are distributed in RWUSD on to the consumer’s Spot Account. Yield charges are decided at Binance’s discretion and benchmarked in opposition to devices reminiscent of tokenized U.S. Treasury payments. The APR is flat throughout all deposit sizes, with no tiered charges or limits on subscription quantities as much as $5 million per consumer.
RWUSD begins accruing rewards the day after subscription, primarily based on the bottom day by day steadiness held. Distribution happens two days after the subscription, and rewards are solely issued for balances above 0.01 RWUSD. Redemption timing varies by technique: Quick Redemption delivers USDC immediately, whereas Commonplace Redemption returns property to customers by 10:00 UTC on the third day following the request.
Though RWUSD is benchmarked to yields derived from tokenized RWAs, Binance explicitly clarifies that it doesn’t represent a tokenized safety, fund, or transferable on-chain asset. The agency emphasizes that customers haven’t any direct declare to the underlying RWAs or the earnings generated.
RWUSD is unavailable to U.S. individuals and topic to alter in yield charges, subscription caps, and redemption circumstances, per Binance’s inside insurance policies.
The product’s backing stems from income streams inside Binance’s ecosystem and choose off-chain property, not from on-chain collateral or third-party custodians.
RWUSD stays confined inside Binance’s closed-loop system, aiming to enchantment to yield-seeking customers with excessive subscription thresholds and collateral choices, with out instantly partaking with tokenized securities markets.
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