Binance Labs have made a strategic investment in OpenEden, a platform that specializes in tokenizing physical assets.
Binance Labs, Binance’s venture capital division, intends to integrate traditional assets, such as Treasury Bills, into the decentralized finance ecosystem through OpenEden in order to offer the advantages of real-world financial yields on-chain, according to a post on Binance.
This is where the investment made by Binance becomes relevant. With the support of Binance Labs, OpenEden should be able to grow its product line and further include tokenized RWAs into the DeFi market.
The money will be utilized to research emerging markets, form alliances, and create new goods. According to a June McKinsey study, an optimistic scenario could see the market value of tokenized real-world assets reach up to $4 trillion by 2030.
They pointed out that adoption will differ throughout asset classes depending on elements like risk appetite, market maturity, and practicality.
OpenEden Details
OpenEden is a full-stack tokenization technology startup and fund management company regulated by the Monetary Authority of Singapore.
The largest tokenized Treasury Bill product outside of the United States is its flagship product, the tokenized U.S. Treasury Bill Fund, or TBILL.
According to Binance Labs, the platform’s total value locked for its tokenized TBILLs exceeded $100 million last month.
Through the use of self-custodial wallets, the platform enables crypto treasury managers, decentralized autonomous organizations, and investors who have undergone KYC verification to mint TBILL tokens.
This allows investors to earn returns on stablecoins by using tokenized US Treasury Bills, providing a decentralized substitute for conventional financial instruments.
OpenEden promises to increase yields for token holders and provide operational efficiency by handling the tokenization process internally. According to Binance Labs, the startup has onboarded more than 100 institutional clients thus far.
Andy Chang, Investment Director at Binance Labs, highlighted OpenEden’s potential to capitalize on the growing demand for RWAs and stablecoins, saying:
We are excited to support OpenEden in their mission to unlock new opportunities in Web3 through sustainable technologies.”
Over the past year, the use of tokenized RWAs, especially Treasury Bills, has seen a noticeable increase.
As per Messari, the aggregate worth of RWAs that are locked in has amounted to $8 billion, indicating the increasing need for these assets in the blockchain domain.
