Tokenized assets: Binance drives innovation

Binance, a global reference point in the crypto world, has taken a new step forward towards the digitalization of institutional investments thanks to the introduction of USYC and cUSDO.

These instruments, which arise from the meeting between traditional finance and the blockchain, offer better security, an interesting yield, and an entirely innovative capital management for banks, funds, and professionals in the sector.

But what does all this mean, practically? Let’s find out together, starting from the basics for those who are approaching tokenized assets for the first time.

Tokenized assets: what they are and why they are changing finance with Binance?

Tokenized assets represent a true evolution: they are the digitalization on the blockchain of classic financial instruments like money funds or government bonds.

This process enables simpler management, greater transparency, and almost instantaneous exchanges of these assets. Here is a more detailed overview of Binance’s new products:

1. USYC: it is a token that replicates the shares of the Hashnote International Short Duration Yield Fund Ltd, authorized by the Cayman Islands Monetary Authority and Circle International Bermuda Limited. The real strength? It allows for almost immediate redemptions in USDC, ensuring high liquidity and limiting risks related to market, maturity, and credit.
2. cUSDO: is the tokenized version of the stablecoin USDO with managed yield, issued by cUSD Organisation Limited and regulated by the Monetary Authority of Singapore (MAS). Supported by real assets and stable, it is designed to offer clear and regulated yields.

In short, through USYC and cUSDO, Binance brings to the blockchain assets already familiar to investors, making them more easily manageable and integrable within institutional portfolios.

The platform has integrated USYC and cUSDO thanks to the solutions and custody, marking an important change for professional investors.

In fact, holding these assets “off-exchange” means protecting capital from the typical risks of centralized platforms, managing it in a more secure and personalized way.

As explained by a spokesperson for Binance in an official statement on July 24, 2025, “the goal is to offer reliable and transparent solutions that make the blockchain an accessible tool for institutional investors, without compromising security” 

Why should an institutional operator ever look at tokenization? Here are some concrete advantages of tokenized collateral:

1. Off-exchange management: banks and funds can hold assets in separate custody, thus reducing counterparty risk.
2. Capital efficiency: transforming assets into tokens speeds up operations and optimizes investment strategies.
3. Diversification: by combining traditional assets, crypto, and tokenized assets, the portfolio is significantly strengthened.
4. Liquidity and speed in refunds: the refund is almost instantaneous, a feature increasingly demanded in the sector.

Furthermore, using assets like USYC and cUSDO as collateral facilitates complex operations, such as loans and lines of credit, all in a digital, regulated, and transparent manner.

How does tokenization work on Binance?

But how is a tokenized asset created in practice on Binance? The system transforms classic instruments – stocks, securities, funds – into digital tokens that are easily traceable, exchangeable, and manageable in real time.

To give an idea, data updated to September 2024 shows how the overall value of tokenized assets on the market (excluding stablecoins) has exceeded 12 billion dollars, recording steady growth in recent months.

And some analyses by Boston Consulting Group, although with different projections, estimate that the tokenization market could reach 16 trillion dollars by 2030 

Have you ever thought about what could happen if even just a portion of the securities were digitized? The opportunities in terms of yield, transparency, and control would be truly unprecedented.

With settlement solutions outside the exchange like Binance Banking Triparty and Ceffu, now large investors can safeguard their funds through tripartite protocols managed by regulated banks.

Thus, the capital remains protected, constantly monitored, and ready to be moved without delays, without sacrificing speed and integration with other Binance services.

An analyst from Ceffu recently observed that “we offer institutional custody designed to protect both digital assets and tokens representing traditional financial instruments. Security is no longer an option, but an essential condition.”

The real strength of tokenized assets? They offer competitive returns and allow for the expansion of investment strategies.

Instruments like USYC and cUSDO are designed to ensure stable and transparent returns, always with the possibility to quickly liquidate or rebalance the portfolio.

1. Diversification helps to better manage the risks arising from both the volatility of crypto and that of traditional markets.
2. The tokenization of real assets opens new channels to finance projects and use the assets as collateral.

The possibility of combining digital assets, classic securities, crypto and stablecoins, all within a single regulated infrastructure, is an innovation that, according to many experts, will also attract even the most cautious institutional investors.

Holding tokenized assets off-exchange: how and why?

Currently, the main trends in institutional investments focus precisely on secure and regulated custody.

Thanks to strategic partnerships like Binance Banking Triparty and Ceffu, control over funds is more rigorous: access remains simple, monitoring is continuous, and security is guaranteed even in the face of extraordinary market events.

“We are witnessing a shift from a closed and non-transparent finance to a traceable, scalable, and personalized capital management,” explained a manager of a European fund in an interview. 

All analyses converge on this fact: in the coming years, tokenization will represent one of the main drivers of growth and innovation for the financial sector.

Some recent reports estimate that the global value of tokenized assets could reach, or even exceed, 16 trillion dollars by 2030, far from the 400 trillion dollars that appear instead as an excessive figure compared to more realistic estimates. 

Binance, with its innovative solutions and regulated partnerships, positions itself right at the center of this revolution.

Those who can seize these opportunities in time will have the chance to actively participate in a change that promises to revolutionize the usual logics of traditional investment.

The innovation promoted by Binance and other major international players puts truly new tools in the hands of institutional operators: higher returns, greater security, and unprecedented operational control.

In a constantly evolving context, keeping an eye on developments such as the tokenization of assets means preparing to seize the opportunities that are defining the future of global finance.