Binance has announced it will begin accepting USYC, a yield-generating stablecoin, as collateral for its crypto-backed lending services, signaling a notable advancement for yield-bearing assets in institutional finance.
USYC, issued by Bermuda-regulated OpenEden Digital, offers automatic returns generated through its underlying asset structure. Binance’s integration introduces a revenue-sharing model enabling borrowers to retain any yield accrued by USYC during loan terms.
Catherine Chen, Head of VIP and Institutional Business at Binance, emphasized the exchange’s measured approach, citing lessons from past industry disruptions including the FTX collapse as a driver for implementing robust risk frameworks alongside innovative products.
The move expands institutional access to capital efficiency strategies by allowing clients to simultaneously leverage crypto holdings for liquidity while earning yield on stablecoin collateral, potentially setting new standards for integrated crypto-financial tools in lending markets.