TL;DR
- Binance now supports tokenized yield assets USYC & cUSDO for institutions, enabling off-exchange holding via Binance Banking Triparty + custody partner Ceffu while earning yield on pledged collateral.
- Expands collateral options beyond fiat/T-bills (on Triparty) and native crypto (on Ceffu), with fee waivers on triparty and Ceffu services until 2026 to drive adoption.
- Represents strategic RWA integration: USYC and cUSDO (yield-bearing stablecoin) align withsurging tokenization trends ($24B market) and institutional demand for capital-efficient, yield-generating collateral.
Binance has revealed its support for institutional tokenized yield-bearing assets, USYC, and cUSDO. This integration utilizes Binance Banking Triparty along with its institutional custody partner, Ceffu. The move allows institutional clients to hold these yield-generating assets securely off-exchange while still accessing the Binance platform. Crucially, they will receive yield directly on assets pledged as collateral within Binance’s institutional services.
Expanding Institutional Collateral Options
This integration significantly broadens the range of assets institutions can use as collateral. On Binance Banking Triparty, it moves beyond traditional options like fiat currencies and Treasury bills. On Ceffu, it expands beyond native crypto assets. To speed up adoption, Binance will eliminate banking triparty fees and cover Ceffu’s MirrorX and MirrorRSV service fees until 2026.
Understanding the Yield-Bearing Tokens
The newly supported assets represent innovative financial products:
- USYC: This token signifies ownership in the Hashnote International Short Duration Yield Fund Ltd, a tokenized money market fund registered in the Cayman Islands. It mainly invests in reverse repurchase agreements that are secured by U.S. government securities, which produce yield.
- cUSDO: This is a wrapped version of OpenEden OpenDollar, a stablecoin that earns yield through rebasing, issued by OpenEden Digital. Its reserves are supported by U.S. Treasury bills and reverse repurchase agreements.
Market Context and Executive Views
The integration comes as the tokenization of real-world assets increases, hitting $24 billion in June 2025, a big jump from $15.2 billion just six months earlier in December 2024. Estimates indicate that tokenization might cover as much as 30% of traditional finance assets by 2034.
Catherine Chen, who leads Binance VIP & Institutional, mentioned that this action highlights Binance’s dedication to improving user experience: “We’re offering institutional clients more choices to optimize capital efficiency while meeting their risk control requirements.”
Kash Razzaghi, the Chief Business Officer at Circle, highlighted the importance of the collaboration: “This marks a meaningful advancement in how institutions can engage with tokenized real-world assets. By making USYC available as off-exchange collateral with yield potential, we’re bringing capital efficiency and risk-managed optionality to institutional investors, bridging traditional finance and blockchain-powered markets.”
