Woo X cryptocurrency exchange has introduced the world’s first tokenized United States Treasury Bills (T-Bills) to retail investors.
A post on X dated April 22 states that Woo X has introduced RWA Earn Vaults, real-world–assets (RWA) tokenization vaults that allow users to earn interest by holding Circle’s USD Coin.
“With the RWA Earn Vaults, all @WOO_X users can now earn stable, predictable yield on their USDC holdings backed by U.S. Treasury Bills without having to jump through any extra hoops.”
Supported exclusively by U.S. T-bills, RWA Earn Vaults provide USDC holders with an annual percentage rate (APR) ranging from 4.5 to 4.7%. As stated in the announcement:
“User subscriptions accumulate real yields, fully backed by U.S. Treasury Bills, with current APRs for 7-day and 28-day terms at ~4.5% and ~4.75% respectively.”
The partnership between Circle-backed OpenTrade, a London-based tokenization platform, and the yield-generating product resulted in its launch.
Circle is the issuer of USDC, the second-largest stablecoin in the world, according to CoinMarketCap data. USDC has a market capitalization of $34 billion, trailing only Tether’s market capitalization of over $109 billion.
RWAs Ranks as second most lucrative crypto narrative in Q1 2024
CoinGecko recently reported that in the first quarter of 2024, RWAs ranked as the second most lucrative narrative in cryptocurrency. Analyst at CoinGecko Lim Yu Qian stated:
“The memecoin narrative was 4.6 times more profitable than the next best-performing crypto narrative of tokenized real-world assets (RWA) and 33.3 times more profitable than the layer 2 narratives with the lowest returns in Q1 this year.”
According to Etherscan, the USD Institutional Digital Liquidity Fund “BUIDL,” introduced by the largest asset manager in the world on March 20, demonstrates the increasing attention from institutions towards the RWA sector. The fund’s current market capitalization exceeds $298 million.
Dune data indicates that as of March 28, 17, tokenization products had tokenized more than $1 billion value of U.S. Treasury securities; by April 22, that figure had increased to $1.15 billion.
Dune reports that, as of the time of writing, Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) continues to be the most substantial treasury tokenization fund, with a value exceeding $390 million.
