Binance Introduces USYC and cUSDO for Enhanced Off-Exchange Settlement Solutions

Binance Expands Off-Exchange Solutions with USYC and cUSDO

Binance, the preeminent blockchain ecosystem and the largest cryptocurrency exchange by trading volume, has made a significant leap in its service capabilities with the integration of tokenized yield-bearing assets, USYC and cUSDO, into its Off-Exchange Settlement Solutions. This pivotal development offers institutional users a more versatile choice for capital efficiency while maintaining risk control strategies.

Enhanced Access for Institutional Clients

Effective immediately, Binance’s integration allows institutional clients to hold USYC and cUSDO off-exchange, utilizing Binance Banking Triparty's infrastructure alongside services from its institutional custody partner, Ceffu. This move is noteworthy as it expands the types of collateral institutional users can leverage beyond traditional assets like fiat currencies and Treasury bills. By incorporating these tokenized assets into its offerings, Binance empowers institutions with greater flexibility and the potential to earn yield on their pledged collateral.

Catherine Chen, the Head of Binance VIP Institutional, stated, “Our integration of tokenized real-world assets demonstrates our continued focus to enhance user experience on Binance.” She further emphasized that this integration allows clients to capitalize on the benefits associated with digital assets, such as immediate settlement times, transparent on-chain transactions, and continuous market access, thus facilitating further adoption of cryptocurrency.

Market Growth and Tokenization Trends

The tokenization of real-world assets has experienced significant momentum, with figures rising from $15.2 billion in December 2024 to an estimated $24 billion by June 2025. These assets are projected to comprise up to 30% of the total traditional finance market, which is valued at over $400 trillion by 2034. This represents a formidable potential for growth and signals a robust future for the cryptocurrency sector, currently valued at around $3 trillion.

Kash Razzaghi, Chief Business Officer at Circle, remarked on this integration, stating that it marks an exciting development in how institutions can leverage tokenized real-world assets. By making USYC available as off-exchange collateral with yield potential, institutions are offered a refined balance of capital efficiency and risk management.

The Role of USYC and cUSDO

USYC serves as a digital representation of shares in the Hashnote International Short Duration Yield Fund Ltd., a tokenized money market fund based in the Cayman Islands. This fund primarily engages in reverse repurchase agreements backed by U.S. government securities, offering holders quick redemption into USDC. Additionally, USYC’s launch on the BNB Chain enhances its usability and accessibility across the cryptocurrency landscape.

On the other hand, cUSDO, an innovative offering by OpenEden, is a wrapped version of OpenDollar (USDO), a rebasing yield-bearing stablecoin. This asset allows users to earn yields generated from reserves supported by U.S. Treasury bills and reverse repurchase agreements. The incorporation of cUSDO within Binance Banking Triparty illustrates how institutional-grade real-world assets can promote capital efficiency and provide the security necessary for institutional participation.

Binance’s Commitment to Institutions

In 2023, Binance pioneered the triparty banking model tailored for the cryptocurrency industry to provide institutional clients with seamless access to trading collateral through partnerships with regulated banks. This model enables these institutions to store their assets securely under corporate accounts while engaging in Binance’s comprehensive suite of trading solutions.

To further incentivize institutional adoption, Binance has pledged to waive banking triparty fees through 2026 and absorb service fees related to custody provided by Ceffu. This strategic move is designed to support institutions in embracing cryptocurrency with confidence, thus enhancing market liquidity and benefiting all users of the Binance platform.

For institutions looking to engage with these enhanced off-exchange solutions, Binance encourages inquiries via its dedicated VIP institutional channels, amplifying the opportunity for participants to leverage new tokenized assets within a compliant framework. As the cryptocurrency landscape continues to evolve, Binance remains steadfast in its mission to support both traditional and decentralized finance, aiming to increase financial freedom and accessibility globally.

Binance’s commitment to providing cutting-edge solutions reaffirms its leadership position in the cryptocurrency industry and reflects its ongoing mission to advance user experience and institutional engagement in an increasingly complex financial environment.