Binance launches RWUSD: a new yield product linked to US Treasuries, not a stablecoin but enjoys 4.2% APR.

Binance recently launched the yield product RWUSD, attempting to bring the real-world asset (RWA) earnings into the platform ecosystem. Although this product does not have on-chain liquidity, it offers a 4.2% annual return linked to U.S. Treasury bonds and can be used as collateral for borrowing, making it one of the options for high-net-worth users seeking stable returns in a volatile market.

What is RWUSD? It is yield-linked to US Treasury bonds, but it is not a stablecoin.

RWUSD is not a new stablecoin, nor is it a tokenized asset representing ownership of real-world assets; rather, it is a "book profit certificate" that exists solely within the Binance system. After users subscribe through USDT or USDC, Binance will issue RWUSD to their spot account at a 1:1 ratio and calculate and distribute interest based on the user's daily holdings.

When held, RWUSD cannot be transferred or traded, cannot be withdrawn to an on-chain wallet, and cannot be used to participate in any DeFi or on-chain applications.

During redemption, RWUSD can only be redeemed 1:1 for USDC. Users can choose to use the fast redemption (Fast Redemption), which incurs a 0.1% service fee, or the standard redemption (Standard Redemption), which only incurs a 0.05% fee. Occasionally, there will also be promotional events that waive the fast redemption fees.

What are the features of RWUSD? Enjoy a 4.2% Fluctuation APR and collateralized lending.

The main attraction of RWUSD lies in its 4.2% floating annual return rate, applicable to all amounts of funds without tiered fees. Each user can subscribe up to 5 million USD, making it suitable for high-net-worth investors to allocate idle stablecoins in search of stable returns:

The yield of RWUSD will come from Binance's operations, including but not limited to investments in real-world assets (RWA), including tokenized US Treasuries, and the annual return rate will be determined by Binance based on market conditions and product sustainability.

The announcement stated that daily earnings will be directly distributed to the spot account in the form of RWUSD, with interest starting to accrue from the day after the subscription date, and interest can be withdrawn two days later.

Additionally, users can also use RWUSD as collateral for VIP lending, allowing them to earn continuous returns while borrowing funds, thus improving the efficiency of fund utilization.

How to subscribe to Binance RWUSD?

Whether on the official website or the app, you can easily purchase RWUSD through the following three steps:

Step 1: Go to the "Finance" section, select "Binance Earn Coin" and click RWUSD.

Step 2: Click to subscribe.

Step 3: Enter the subscription amount, read and agree to the terms, then click confirm.

RWUSD brings real-world earnings into the cryptocurrency exchange.

On the compliance level, RWUSD is not open to users in the United States, and it emphasizes that RWUSD is only a record of users purchasing assets and accumulating rewards on the platform, and does not constitute securities, funds, or transferable assets.

RWUSD serves as Binance's innovative attempt to bridge the current regulatory environment and the demand for stable yield products. It offers returns linked to RWA while avoiding direct entry into the regulatory gray area of tokenized products, making it an attractive option for users looking to earn stable returns.

This article discusses Binance's launch of RWUSD: a new yield product linked to US Treasuries, not a stablecoin but enjoying a 4.2% APR, first appearing in on-chain news ABMedia.