Binance Backs Yield-Based Stablecoins USYC and cUSDO
Binance now supports USYC and cUSDO yield-based stablecoins for institutional collateral and passive income distribution.
- Binance adds Circle’s USYC as institutional collateral.
- cUSDO from OpenEden will also be integrated.
- Institutions can now distribute interest to stablecoin holders.
Binance has taken a major step toward reshaping the stablecoin ecosystem by supporting two yield-generating assets — USYC from Circle and cUSDO from OpenEden Digital. These stablecoins allow institutional clients to use them as collateral while offering interest income to holders, moving beyond traditional stablecoins that don’t generate returns.
The new development comes at a time when decentralized finance (DeFi) continues to influence centralized platforms. With this move, Binance aims to make yield-bearing stablecoins more accessible and functional for professional users.
What Is USYC and Why It Matters
USYC is a yield-based stablecoin issued by Circle, designed specifically for institutional clients. Unlike traditional stablecoins such as USDC, USYC allows holders to receive passive interest income. Binance has now approved USYC as eligible collateral, meaning that institutions can use it in trading and financial operations on the platform.
The unique aspect of USYC is its ability to distribute interest to holders. This sets it apart in a competitive market, where institutions are constantly seeking efficient and secure ways to optimize capital.
Integration of OpenEden’s cUSDO
Alongside USYC, Binance will also integrate cUSDO, another yield-based stablecoin issued by OpenEden Digital. Similar to USYC, cUSDO allows users to earn yield while holding a stable, U.S. dollar-pegged asset.
This integration strengthens Binance’s focus on bridging traditional finance and DeFi by allowing secure yield exposure within the comfort of a centralized platform. For institutions, it opens up a compliant and transparent route to earn yield, while staying within Binance’s robust ecosystem.
A New Era for Institutional Finance in Crypto
By supporting yield-based stablecoins, Binance signals a clear shift toward capital-efficient and revenue-generating crypto assets. Institutions now have more tools at their disposal to manage assets and generate returns without exiting the platform or dealing with complex DeFi protocols.
This may well mark the beginning of broader adoption of smart, interest-bearing stablecoins in the centralized exchange space.
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