RWA Yield Products and Binance’s Yield Trio: A Cross-Exchange Comparison

Government bond yields vary significantly across the globe, with U.S. Treasuries serving as the global benchmark at around 4.33% to 4.41%. The U.S. Treasury market remains one of the most liquid fixed-income markets worldwide, attracting demand from investors seeking predictable returns. However, access to these yields often differs depending on investor location.

Foreign investors typically face multiple barriers, including complex regulatory requirements, lengthy account opening procedures, settlement delays, high minimum investment thresholds, and operational hurdles in traditional banking systems.

On July 28, Binance launched RWUSD, a tokenized product designed to offer cryptocurrency users exposure to short-term U.S. Treasuries and other real-world assets (RWA). With an annualized return of up to 4.2%, RWUSD provides an on-platform option to participate in Treasury-based yields without navigating traditional bond market procedures.

RWUSD is the latest addition to Binance’s suite of yield products, following BFUSD (November 2024) and LDUSDT (April 2025), marking an expansion of yield opportunities within the exchange’s ecosystem.

• November 2024: BFUSD debuts as the first reward-bearing margin asset.

• April 2025: LDUSDT launches.

• July 2025: RWUSD enters the market.

RWUSD, BFUSD, LDUSDT: How Binance’s Yield Products Compare

1. RWUSD

RWUSD is a principal-protected yield product, providing exposure to real-world assets such as U.S. Treasury Bills, delivering up to 4.2% APY. It is designed for investors seeking consistent, low-risk returns regardless of market volatility.

2. BFUSD

BFUSD generates returns from two key sources:

• Delta Hedging: Arbitrage between spot and futures markets to capture funding fees with lower risk.

• ETH Staking: Allocation of funds to Ethereum staking for validator rewards.

This diversified strategy allows BFUSD to adapt to changing market environments, offering the highest APY among Binance’s three yield products (currently 5.5%), although returns may fluctuate depending on market conditions.

3. LDUSDT

LDUSDT offers a straightforward yield solution, directly tied to Binance Simple Earn USDT. Assets can be used as futures margin while earning yield, maintaining liquidity, with its value growing over time as Real-Time APR rewards accumulate.

The table below highlights the key distinctions between the three products, including launch dates, yield sources, reward distribution, and use cases:

When users subscribe to BFUSD, LDUSDT, or RWUSD using USDC or USDT, the assets they receive are not freely transferable tokens and not stablecoins. These are internal assets, recognized and usable only within the Binance platform.

Compared to simply depositing funds in Simple Earn, these products allow users to earn yield while simultaneously using their funds as collateral, unlocking additional trading and borrowing features.

Key functional differences:

• BFUSD & LDUSDT: Reward-bearing margin assets usable as futures trading margin, keeping funds liquid and trade-ready. BFUSD provides an extra reward boost when used as margin.

• RWUSD: Cannot be traded, transferred, or withdrawn on-chain. Functions more like a traditional fixed-term deposit, with the added benefit of being used as collateral for Binance VIP loans.

RWUSD vs. Binance Simple Earn Products

RWUSD also stands apart from Binance’s standard Simple Earn offerings.

The table below shows current APYs for different stablecoins under Simple Earn. RWUSD offers a fixed 4.2% APY, while other stablecoins have tiered yields: smaller deposits earn higher rates, but APYs drop once thresholds are exceeded. For example, USDT yields drop to 3.14% above 200 USDT, and USDC to 2.16% above 100 USDC.

RWA Yield Products Across Major Exchanges

Beyond Binance, other major exchanges have introduced RWA-linked yield products, competing to bring traditional fixed-income returns on-chain.

The chart below compares RWUSD (Binance), USDtb (Bybit), and BGUSD (Bitget), highlighting differences in product type and underlying asset strategies. RWUSD is a principal-protected yield product, USDtb is a blockchain-based stablecoin managed by Ethena Labs, and BGUSD is a yield-bearing tokenized asset, closer to an on-chain interest-accruing deposit.

Underlying asset choices also vary. RWUSD focuses on tokenized U.S. Treasuries, prioritizing capital safety and predictable yields. USDtb draws from BlackRock’s BUIDL token, which holds cash and Treasuries for a cash-equivalent profile. BGUSD takes a diversified RWA approach, blending money market funds and Treasuries, offering a higher 5% APR.

How RWUSD Works

1. Subscription Process

Users can subscribe with as little as $0.01 in USDT or USDC. Deposits are converted 1:1 into RWUSD, providing immediate exposure to tokenized Treasury yields.

2. Redemption Mechanisms

Redemptions are settled in USDC via two pathways:

• Fast Redemption: Immediate liquidity with a 0.1% fee for convenience.

• Standard Redemption: Processed within three business days (by 10:00 UTC) at a reduced 0.05% fee.