Binance has launched RWUSD, a new principal protection yield product that offers up to 4.2% APR benchmarked against tokenized US Treasury and other real-world assets.
The offering aims to continue Binance’s plan to incorporate off-chain financial products into the acquisition product suite, while avoiding direct exposure to tokenized assets.
Users can subscribe to RWUSD using Stablecoins such as USDT and USDC, depending on their local availability. Upon subscription, Binance issues RWUSD at a 1:1 ratio with the user’s spot account and no subscription fees are associated.
In USDC, redemption is only permitted at the same 1:1 ratio, regardless of the initial Stablecoin used. The rapid redemption and standard redemption options take on charges of 0.1% and 0.05% respectively, but Binance may periodically waive any prompt redemption fees at its discretion.
RWUSD is not a stubcoin
According to Binance, RWUSD does not represent ownership of RWA, either Stablecoin or tokenized assets. Instead, it acts as a ledger entry that reflects the user’s principal, generating rewards within Binance’s infrastructure.
Unlike Stablecoins, RWUSD cannot be traded, transferred to other accounts, or withdrawn by chain. However, similar to Stablecoins, it may be used as collateral for Binance’s VIP loans, providing yield continuity even when leveraged within Binance’s loan ecosystem.
Rewards are generated daily and distributed directly to users’ spot accounts on RWUSD. Yield rates are determined at Binance’s discretion and benchmarked against measures such as the US Treasury bill. APRs are flat across all deposit sizes, with no tiered fees or restrictions on subscription amounts up to $5 million per user.
RWUSD will begin receiving compensation the day after your subscription, based on the lowest daily balance held. The distribution occurs two days after subscription, and the reward is issued only for balances above 0.01 RWUSD. The timing of redemption varies depending on how you use: Fast redemption will deliver USDCs instantly, while standard redemption will return assets to the user by 10:00 UTC on the third day of the request.
While RWUSD is benchmarked for yields derived from tokenized RWA, Binance makes it clear that it does not constitute tokenized security, funds, or transferable on-chain assets. The company emphasizes that users have no direct claims about the underlying RWA or the revenue generated.
RWUSD is not available to US people and may undergo changes to yield rates, subscription caps and redemption terms for each Binance internal policy.
The backing of this product comes from revenue streams within Binance’s ecosystem and off-chain assets of choice rather than collateral or third-party custodians on the chain.
RWUSD is limited to Binance’s closed-loop system and aims to appeal to yielding users with high subscription thresholds and collateral options without directly engaging in tokenized securities markets.