Woo X Introduces Tokenized Treasury Bills; Sparks Surge in Retail Investors' Interest
Summary:
Woo X, a cryptocurrency exchange, has reportedly become the first to offer tokenized Treasury Bills for retail investors. It has introduced "RWA Earn Vaults" that allows users to generate a steady yield on USDC holdings supported by U.S. Treasury Bills. Jointly launched with OpenTrade, a London-based tokenization platform backed by Circle, RWA Earn Vaults promise an annual interest rate of around 4.5% to 4.7%. The tokenized real-world assets (RWA) have been the second most profitable narrative in the crypto space as per the Q1 2024 CoinGecko report, indicating a growing institutional interest.
Woo X, a cryptocurrency exchange, has introduced tokenized Treasury Bills (T-Bills), marketing itself as the first platform to offer retail investors access to tokenized T-Bills. With the introduction of its Real-World–Asset (RWA) Earn Vaults, Woo X allows users to accrue interest through retaining Circle's USD Coin (USDC), reported on April 22. It was stated that Woo X users can obtain stable and predictable returns on their USDC holdings backed by U.S. Treasury Bills without any added complications. The RWA Earn Vaults, made exclusively available by U.S. T-Bills, promise an annual percentage yield of between 4.5% and 4.7% for USDC holders. Real yields, wholly supported by U.S. Treasury Bills, are accrued by subscribers, with current APRs for seven day and 28 day terms approximately 4.5% and 4.75% respectively.
The launch of this interest-generating product came about through a partnership with OpenTrade, a tokenization platform based in London and supported by Circle. Circle issues the world’s second-biggest stablecoin, USDC, which has a market cap of $34 billion, second only to Tether USD’s (USDT) market cap of over $109 billion.
The second most profitable narrative in the first quarter of 2024 was RWAs in the CoinGecko report. Despite the memecoin narrative garnering 4.6 times greater profitability than the next best-performing crypto narrative of tokenized RWAs, CoinGecko analyst Lim Yu Qian stated it was still 33.3 times more profitable than layer 2 narratives which had the least returns in Q1.
The RWA sector has attracted significant attention from institutions, as demonstrated by BlackRock launching a USD Institutional Digital Liquidity Fund worth over $298 million presently under the title "BUIDL" on March 20. As of March 28, more than $1 billion in U.S. Treasuries had been tokenized by 17 tokenization products, which had grown to $1.15 billion by April 22.
Franklin Templeton as of now has the largest treasury tokenization fund - Franklin OnChain U.S. Government Money Fund (FOBXX) which is worth over $390 million. Tokenization is anticipated to revolutionize traditional finance, a perspective that is shared by FTX US president Brett Harrison. The precipice of a potential yield crisis has emerged as a topic of discussion for EigenLayer.
Published At
4/22/2024 2:29:24 PM
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