Binance Labs Invests in RWA Platform OpenEden

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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September 13, 2024 00:41 EDT

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Binance Labs, the venture capital arm of Binance, has made an undisclosed investment in OpenEden, a platform focused on tokenizing real-world assets (RWA) in the decentralized finance (DeFi) sector.

OpenEden is made up of a Monetary Authority of Singapore-licensed fund management company and a full-stack tokenization tech firm.

With the funding from Binance Labs, OpenEden plans to introduce more RWA-backed products, form new partnerships, and expand into emerging markets.

“We believe OpenEden is well-positioned to capitalize on the growing adoption of stablecoins and RWAs, and we are excited to join them on this journey,” said Andy Chang, investment director at Binance Labs.

With backing from Binance Labs, OpenEden plans to expand access to RWA-backed yields within DeFi. OpenEden is working to bridge traditional finance with the decentralized world by creating investment opportunities in tokenized real-world assets, including U.S. Treasury Bills (T-Bills).

What Are Real-World Assets (RWAs)?

There has been a huge buzz around RWAs recently. This refers to physical or traditional financial assets that exist outside of the blockchain, such as real estate, bonds, or commodities.

RWA means assets can be tokenized. The assets are represented as digital tokens on a blockchain, making them more accessible and liquid within the digital world.

Recently, Jade City, an RWA platform said it is securing $1.8 million in a private funding round. The platform aims to change the way precious commodities are accessed and traded.

By tokenizing RWAs, platforms like OpenEden enable investors to gain exposure to traditional assets while benefiting from the transparency, speed, and decentralization of blockchain technology.

What Are Tokenized T-Bills?

Tokenized Treasury Bills (T-Bills) are digital representations of U.S. government debt securities, and are typically considered one of the safest financial instruments.

OpenEden’s tokenized U.S. T-Bill Fund is the first tokenized T-Bill product to receive an “A” rating from Moody’s, highlighting its reliability. Tokenized T-Bills allow investors to earn yields on their stablecoins by minting TBILL tokens on OpenEden’s platform.

OpenEden claims it has on boarded over 100 institutional clients and achieved over $100 million in Total Value Locked (TVL) for their tokenized T-Bills.

The platform manages the entire tokenization process in-house, which increases operational efficiency and results in higher net yields for token holders.