Woo X Launches Tokenized U.S. Treasury Bills, Revolutionizing Yield Opportunities for Crypto Investors

Woo X Launches Tokenized U.S. Treasury Bills, Revolutionizing Yield Opportunities for Crypto Investors

Woo X News – The real-world assets sector has continued to attract attention as the second most profitable crypto narrative in the first quarter of 2024.

Woo X cryptocurrency exchange has made headlines by launching tokenized United States Treasury Bills (T-Bills), asserting itself as the pioneer protocol to offer such tokenized T-Bills for retail investors.

With the introduction of its real-world–asset (RWA) tokenization vaults, known as RWA Earn Vaults, Woo X has provided users with the opportunity to earn yield by holding Circle’s USD Coin (USDC). In an announcement on April 22, Woo X stated:

“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 any additional requirements.”

Backed solely by U.S. T-bills, the RWA Earn Vaults offer an annual percentage rate (APR) ranging between 4.5% and 4.7% to USDC holders. The announcement further elaborated:

“User subscriptions accumulate real yields, fully backed by U.S. Treasury Bills, with current APRs for 7-day and 28-day terms at approximately 4.5% and 4.75% respectively.”

This yield-earning product was launched in collaboration with OpenTrade, a tokenization platform headquartered in London and backed by Circle.

Circle, the issuer of the world’s second-largest stablecoin, USDC, with a market cap of $34 billion, stands behind this initiative. This places USDC second only to Tether, which boasts a market capitalization exceeding $109 billion, as per CoinMarketCap data.

According to a recent report by CoinGecko, RWAs emerged as the second most profitable narrative in the crypto space during the first quarter of 2024. CoinGecko analyst Lim Yu Qian remarked:

“The memecoin narrative outperformed the next best-performing crypto narrative of tokenized real-world assets (RWA) by 4.6 times and surpassed layer 2 narratives with the lowest returns in Q1 this year by a staggering 33.3 times.”

Demonstrating the increasing institutional interest in the RWA sector, BlackRock, the world’s largest asset manager, launched a USD Institutional Digital Liquidity Fund on March 20, under the ticker “BUIDL,” valued at over $298 million at the time of writing, according to Etherscan.

By March 28, over $1 billion worth of U.S. Treasurys had been tokenized across 17 tokenization products, a figure that rose to $1.15 billion by April 22, as per Dune data.

Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) continues to lead as the largest treasury tokenization fund, valued at over $390 million at the time of writing, according to Dune.