Binance invests in OpenEden to expand tokenized RWAs

Binance Labs has made a strategic investment in OpenEden, a platform focused on tokenizing real-world assets.

According to a post by Binance, Binance Labs, the venture capital arm of Binance, aims to bring the benefits of real-world financial returns to the chain by integrating traditional assets like Treasury Bills into the decentralized finance ecosystem through OpenEden. This is where Binance’s (BNB) investment comes in.

Binance Labs’ investment is expected to help OpenEden expand its offerings and further integrate tokenized RWAs into the DeFi space. The funding will be used to develop new products, build partnerships, and explore emerging markets.

In June, McKinsey estimated that the market value of tokenized real-world assets could reach $2 trillion by 2030, with a bullish scenario reaching as high as $4 trillion. They noted that adoption will vary across asset classes depending on factors such as viability, market maturity, and risk appetite.

OpenEden details

OpenEden is a Monetary Authority of Singapore-licensed fund management company and full-stack tokenization technology firm. Its flagship product, a tokenized U.S. Treasury Bond Fund known as TBILL, is currently the largest tokenized Treasury Bond product outside the U.S.

According to Binance Labs, the total value locked for its tokenized TBILLs on the platform last month surpassed $100 million.

The platform allows KYC-verified investors, decentralized autonomous organizations, and crypto treasury managers to mint TBILL tokens using self-custodial wallets. This provides a decentralized alternative to traditional financial products by allowing investors to earn returns on stablecoins through tokenized U.S. Treasury Bonds.

By managing the tokenization process in-house, OpenEden claims to deliver operational efficiencies and higher returns for token holders. According to Binance Labs, the company has onboarded over 100 institutional clients to date.

“We are excited to support OpenEden’s mission to unlock new opportunities in Web3 through sustainable technologies,” said Andy Chang, Chief Investment Officer at Binance Labs, noting OpenEden’s potential to tap into the growing demand for RWAs and stablecoins.

The rise of tokenized RWAs, particularly Treasury bonds, has gained momentum over the past year. According to Messari, the total value locked in RWAs has reached $8 billion, indicating increasing demand for these assets in the blockchain space.