Key takeaways:
- Crypto Exchange WOO X marks debut of tokenized T-Bills for retail customers
- Woo X has also rolled out index-linked meme-coin perpetuals in collaboration with market maker Wintermute.
Cryptocurrency exchange Woo X has made waves in the sector by unveiling a revolutionary product that enables retail customers to invest in tokenized U.S. Treasury bills, marking a significant milestone in the industry’s evolution.
Developed in collaboration with London-based OpenTrade, the new offering, known as RWA (Real-World Assets) Earn Vaults, aims to bridge the gap between traditional financial instruments and the innovative features of the cryptocurrency market.
This groundbreaking product is designed to provide users with the stability of traditional assets while leveraging the benefits of blockchain technology.
The RWA Earn Vaults allow users to earn yields by holding Circle’s USD Coin (USDC), a stablecoin pegged to the U.S. dollar.
By investing in these vaults, users can earn stable and predictable yields on their USDC holdings, all backed by U.S. Treasury Bills, without encountering the complexities typically associated with traditional financial products.
The APR (annual percentage rate) for the RWA Earn Vaults ranges between 4.5% and 4.7%, offering users attractive returns on their investments. With current APRs of approximately 4.5% for 7-day terms and 4.75% for 28-day terms, these vaults present a compelling opportunity for investors seeking stable returns in the volatile crypto market.
Major players like BlackRock have already entered the fray with initiatives such as the USD Institutional Digital Liquidity Fund, which boasts a significant market value of over $298 million.
According to data from Dune Analytics, over $1.15 billion worth of U.S. Treasuries have been tokenized through various products, highlighting the increasing adoption of tokenization in the financial sector.
Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) stands out as one of the largest treasury tokenization funds, further solidifying the trend towards digitizing traditional assets.
OpenTrade’s involvement in the development of RWA Earn Vaults adds credibility to the product, given its ties to Center, the collaboration between USDC issuer Circle and the Marco Polo enterprise blockchain project.
