Binance Adds Support for Yield-Based Stablecoins USYC and cUSDO as Collateral

TLDR:

• Binance integrates USYC and cUSDO as collateral for institutional derivatives.
• USYC mirrors money market funds while staying liquid on BNB Chain.
• cUSDO offers yield exposure via tokenized Treasuries from OpenEden.
• Demand for tokenized yield products has doubled in 2025 across exchanges.

Circle has teamed up with Binance to bring its yield-generating stablecoin, USYC, into the hands of institutional traders. 

Binance will now accept USYC as collateral for off-exchange derivative positions, a move that mirrors traditional finance practices. This also allows institutions to distribute interest income directly to holders. 

Meanwhile, Binance will also integrate cUSDO, a similar yield-based stablecoin issued by OpenEden. Together, the two products aim to bridge the gap between crypto-native assets and traditional yield instruments.

Circle’s USYC Joins Binance as Institutional Collateral

Circle announced that Binance will begin supporting USYC, a tokenized money market fund, for institutional clients. 

The token allows firms to use off-exchange collateral while maintaining access to yield, modeled on tri-party custody models in TradFi. It’s issued on BNB Chain and offers fast conversions back into USDC, giving traders more room to maneuver.

Circle’s Chief Business Officer, Kash Razzaghi, said the integration will allow capital to flow faster and more efficiently across digital markets. Institutional clients can now park funds in a product that mirrors Treasury yields but lives on-chain. 

The goal is to offer more security and liquidity without forcing firms to leave the crypto ecosystem.

Circle announced that Binance will accept its yield-based stablecoin USYC as collateral for institutional clients, which will be able to distribute interest income to holders. Binance also announced that it will integrate cUSDO, another yield-based stablecoin issued by OpenEden…

— Wu Blockchain (@WuBlockchain) July 24, 2025

Binance Backs Tokenized Yield with cUSDO Integration

Besides USYC, Binance has also added support for cUSDO, OpenEden’s version of a yield-backed stablecoin. Just like USYC, it’s designed to provide exposure to tokenized US Treasuries while remaining liquid and on-chain. Binance’s Catherine Chen said the addition would expand options for capital-efficient trading.

Analysts say this is a direct response to growing demand from large firms for safer ways to earn yield without leaving crypto. These tokenized instruments are built to mirror the mechanics of money market funds and Treasuries while staying integrated with on-chain tools.

According to crypto data app Alva, social sentiment is trending bullish around both USYC and cUSDO. Key users and market watchers are rotating into these assets, calling them essential for institutions with large capital reserves. Trading data on cUSDO has shown consistent volume and a healthy premium, pointing to long-term confidence in the model.

As of July, interest in tokenized Treasuries has surged across crypto platforms, nearly doubling since the year began. With both USYC and cUSDO now tied into Binance’s infrastructure, other exchanges may soon follow. The race to combine traditional safety with crypto-native tools is clearly accelerating.