Binance's newly launched financial product RWUSD will go live on July 28. RWUSD is essentially an 'internal revenue certificate' linked to real-world assets, an abstract experiment by Binance simulating traditional finance, using internal platform certificates to indirectly link to real-world revenues, resembling a 'shadow asset' in the financial system.
I will discuss my understanding of RWUSD from three perspectives:
1⃣ Product mechanism: looks like a financial product, but is actually an off-chain substitute for 'US Treasury yield accounts'
The structure of RWUSD is very clear:
Users subscribe with USDT/USDC
Binance issues 1:1 RWUSD to spot accounts
Interest paid daily (annualized up to 4.2%, referencing US Treasury yields)
Redeemable at any time, 1:1 exchange for USDC (with redemption fee)
⚠️ It cannot be transferred, traded, or put on-chain.
Binance clearly states that RWUSD is just an 'internal holding certificate' of the platform, lacking on-chain asset attributes.
2⃣ Yield model: using centralized credit to simulate the liquidity experience of RWA
The biggest advantage of this type of product is that 'the experience is like on-chain, but more efficient':
Subscription credited instantly, 0 subscription fee
Interest paid daily, no limit
Can be used as collateral for loans and other combination strategies
Clear yields, non-tiered, suitable for large participants
Although it is not really 'on-chain RWA', from the yield structure to the risk control framework, it is basically a replica of TradFi, while Binance essentially creates a 'wrapper' for RWA.
This is actually quite smart, as it allows users to earn yields linked to US Treasuries without needing to understand them or interact with actual RWA issuers, while also solving the biggest issues faced by on-chain RWA - poor liquidity and low settlement efficiency.
3⃣ Strategic significance: RWUSD is one of the most practical products for Binance in the 'RWA track'
RWA has been viewed as the main narrative for the next stage of DeFi's integration with TradFi, and while RWUSD is not a true on-chain RWA, it is likely to become Binance's 'bridge product' for RWA.
Showing to institutions: Binance can handle funds and provide interest
Showing to retail investors: on-chain operations are too cumbersome, I can earn 'US Treasury yields' using RWUSD as well
Showing to project parties: stable yield + collateralizable, this is a low-risk liquidity guidance method
On a deeper level, this may also be Binance building its own 'general asset for stable yields'
Similar to a centralized version of 'sDAI + USDC + fixed income notes' hybrid.
Although RWUSD is not perfect, its design is clear, and the experience is smooth, serving as a 'digital entry to real-world yields', which is a very friendly tool for idle stablecoins during high-interest periods.
I will personally use a portion of USDC to subscribe, test liquidity and interest stability, combined with Binance VIP borrowing to create a light position strategy, and see if I continue to leverage when RWUSD is linked to more assets in the future.
