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Woo X Exchange Makes History with World’s First Tokenized T-Bills for Retail Investors

Hassan Shittu
Last updated: | 2 min read

Woo X Exchange made history by introducing the world’s first tokenized U.S. Treasury bills on April 22, providing retail investors access to the traditional financial asset through its RWA Earn Vaults.

Developed in collaboration with institutional tokenization firm OpenTrade, the RWA Earn Vaults offer users the opportunity to earn yields by holding Circle’s USD Coin (USDC), backed by U.S. Treasury Bills. 

The Growing Interest In the RWA Sector

The launch of Woo X’s RWA Earn Vaults comes amid a growing trend toward tokenizing real-world assets (RWAs), which CoinGecko reported as the second most profitable crypto narrative in the first quarter of 2024. 

“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,” CoinGecko analyst Lim Yu Qian said.

This shows the rising institutional interest in the RWA sector, with major players like BlackRock entering the fray with their USD Institutional Digital Liquidity Fund, which is currently worth over $298M

According to the exchange’s announcement, the RWA Earn Vaults offer USDC holders an annual percentage rate (APR) between 4.5% and 4.7%, providing stable and predictable yields. 

With these stable and predictable yields, these vaults represent a significant milestone in bridging the gap between traditional financial securities and the cryptocurrency space.

Woo X users can now earn stable, predictable yield on their USDC holdings backed by U.S. Treasury Bills without jumping through any extra hoops,” the announcement read.

Woo X’s Chief Operating Officer, Willy Chuang, expressed enthusiasm about the initiative, highlighting its role in bridging the gap between traditional financial securities and the dynamic crypto market.

“For the first time, retail users on a centralized exchange can invest in USDC real-world asset vaults, with U.S. Treasury bills as the underlying assets,” Chuang said in an email. “This initiative bridges a crucial gap between traditional financial securities and the dynamic world of cryptocurrency, offering our users an unprecedented opportunity to engage with low-risk, high-quality financial assets in a seamless, secure, and efficient manner.”

He emphasized the convenience for retail users, noting that they can now access interest-bearing accounts backed by T-Bills directly on a centralized exchange without hassle.

Woo X’s partnership with OpenTrade, which has ties to Circle and the now-dissolved Center collaboration, may contribute to making RWA a bigger trend yet.

The introduction of tokenized T-Bills on Woo X Exchange adds to the momentum of tokenization in the crypto space. According to Dune, over $1 billion worth of U.S. Treasury securities have already been tokenized through various platforms.

U.S. Treasuries tokenized through various platforms Source: Dune

Woo X On The Frontier Of Innovation

Earlier this year, WOO X announced the successful closure of a $9 million funding round to bolster liquidity on its platform. According to a statement published on Woo’s website, the funds will be directed towards augmenting liquidity across various markets, starting with BTC and ETH perpetual futures and subsequently expanding to include altcoin perpetual futures and spot markets.

Additionally, WOO X outlined plans to launch a designated market maker (DMM) program for spot markets in the first quarter of 2024. The allocation of funds raised will support global expansion efforts, facilitate product development, and ensure regulatory compliance.