Binance Introduces RWUSD: A New Yield Product Offering Up to 4.2% APR
Binance recently announced the launch of RWUSD, a new principal-protected yield product that offers users up to 4.2% APR. This product is benchmarked against tokenized U.S. Treasury bills and other real-world assets, marking a strategic move by Binance to include off-chain financial instruments in its Earn product suite while avoiding direct exposure to tokenized assets.
Users can subscribe to RWUSD using stablecoins like USDT or USDC, depending on regional availability. Upon subscription, Binance issues RWUSD in a 1:1 ratio to a user’s Spot Account, without any associated subscription fees.
Redemption of RWUSD is only permitted in USDC at the same 1:1 ratio, regardless of the initial stablecoin used. There are two redemption options available – Fast Redemption and Standard Redemption, with fees of 0.1% and 0.05% respectively. Binance may waive Fast Redemption fees at its discretion.
It’s important to note that RWUSD is not a stablecoin, tokenized asset, or representation of ownership in any real-world asset. Instead, it functions as a ledger entry reflecting a user’s principal and accrued rewards within Binance’s infrastructure.
While RWUSD cannot be traded, transferred to other accounts, or withdrawn on-chain, it can be used as collateral for Binance VIP Loans, providing yield continuity even when leveraged within Binance’s loan ecosystem.
Rewards accrue daily and are distributed in RWUSD directly to the user’s Spot Account. The APR is flat across all deposit sizes, with no tiered rates or limits on subscription amounts up to $5 million per user.
RWUSD begins accruing rewards the day after subscription, based on the lowest daily balance held. Distribution occurs two days after the subscription, and rewards are only issued for balances above 0.01 RWUSD. Redemption timing varies by method, with Fast Redemption delivering USDC instantly and Standard Redemption returning assets to users by 10:00 UTC on the third day following the request.
Although RWUSD is benchmarked to yields derived from tokenized real-world assets, Binance clarifies that it is not a tokenized security, fund, or transferable on-chain asset. Users do not have a direct claim to the underlying assets or the income generated.
RWUSD is not available to U.S. persons and is subject to change in yield rates, subscription caps, and redemption conditions according to Binance’s internal policies. The product’s backing comes from revenue streams within Binance’s ecosystem and select off-chain assets, not from on-chain collateral or third-party custodians.
Overall, RWUSD remains within Binance’s closed-loop system, catering to yield-seeking users with high subscription thresholds and collateral options, without directly engaging with tokenized securities markets.