Binance Adds USYC cUSDO as Institutional Collateral with Circle OpenEden Partnership

Binance has expanded its institutional collateral offerings by integrating yield-bearing stablecoins USYC and cUSDO, marking a strategic collaboration with Circle and OpenEden to bridge traditional finance (TradFi) and decentralized finance (DeFi). The move enables institutional clients to use these stablecoins as off-exchange collateral, leveraging tokenized U.S. Treasury interests for enhanced capital efficiency and risk management. USYC, issued by Circle, is backed by U.S. Treasuries and offers yield through interest accruals, while cUSDO, from OpenEden, similarly provides returns on reserves. Binance’s integration allows custodial partners like Binance Banking Triparty and Ceffu to facilitate custody and settlement, ensuring compliance with regulatory frameworks while enabling instant fungibility with USDC. The initiative aligns with broader market trends toward real-world asset (RWA) tokenization, addressing liquidity…