It is important to know that U.S. Treasuries are arguably the highest quality risk-free fixed income asset globally, but for non-U.S. citizens, purchasing U.S. Treasuries is extremely difficult.
To purchase high-quality assets like U.S. Treasuries, we face obstacles such as foreign exchange control, account opening, tax reporting, and cross-border transfers.
At this time, on-chain U.S. Treasuries have arrived.
Binance has recently launched the RWUSD product, which tokenizes real-world assets (RWAs) like U.S. Treasuries and packages them, providing ordinary people with a simple and convenient way to access U.S. Treasury yields.
It can be said that Binance's RWUSD is comparable to Alipay's Yu'e Bao.
Let's take a look at the advantages of this on-chain U.S. Treasury product:
1. Greatly simplifies the purchasing threshold
Non-U.S. citizens need to open an international brokerage account (such as IBKR), involving KYC verification, passport submission, W-8BEN tax forms, or even opening an account in Hong Kong.
Chinese users are also subject to an annual foreign exchange limit of $50,000, with a cumbersome approval process that may be denied.
You only need a Binance account (easily registered by global users), and you can swap USDT for RWUSD with one click using the mobile app or web.
No foreign exchange approval is needed, no SSN or U.S. bank account is required, and no complex tax forms need to be handled.
Ordinary people can participate within minutes, far less than the several weeks required to directly buy U.S. Treasuries.
This is particularly friendly for crypto users, as many already have Binance accounts and hold stablecoins.
2. Provides stable returns and principal protection
Although U.S. Treasuries are safe, yield rates fluctuate (current T-bills are about 4-5%), and holding requires managing maturity dates, auction participation, or secondary market trading. Interest also needs to be manually processed, and tax reporting is complex.
Binance's RWUSD offers a fixed annual yield of 4.2%, automatically compounding and distributing daily.
100% principal protection (can be redeemed for USDC at any time), combined with Binance ecosystem income (such as trading fee sharing) to enhance stability.
This is more 'foolproof' than directly buying U.S. Treasuries, suitable for ordinary people pursuing passive income without worrying about exchange rates or market fluctuations.
3. Greater flexibility
U.S. Treasuries have good liquidity, but redemption requires going through brokers, involving transfer fees and time delays. Chinese users also need to reverse currency exchange.
RWUSD can be flexibly subscribed to, with no lock-up period and redeemable at any time.
For ordinary people, this means being able to quickly enter and exit funds to meet unexpected needs.
To summarize
Purchasing U.S. Treasuries was originally very difficult, but Binance's RWUSD has almost reduced the threshold to zero.
Buying U.S. Treasuries was originally a complex cross-border financial operation, but now it has become one-click investment on a cryptocurrency exchange.
This value is comparable to the birth of 'Yu'e Bao' in Alipay, whose greatest value is turning the complex investment of money market funds into automatic interest generation in user accounts.
The emergence of Yu'e Bao has allowed tens of millions of Chinese people to quickly understand money market funds and invest with just one click.
Binance's RWUSD is not the first on-chain U.S. Treasury product, but its launch on the Binance platform has brought significant influence.
At this time, everyone has genuinely felt the value of equality, low barriers, and globalization that blockchain technology can bring.