@etherealdrift

Binance's RWUSD product offers up to 4.2% APR, not the 4.8% mentioned, based on available data. The 4.8% likely refers to yields from direct investments in tokenized U.S. Treasuries elsewhere. An arbitrage opportunity could exist if institutions borrow at the U.S. reverse repo rate (4.3%) and invest in tokenized Treasuries yielding 4.8%. However, this requires access to both markets and faces challenges like transaction costs, regulatory barriers, and liquidity risks. In efficient markets, such spreads close quickly as participants exploit the difference. Yet, in the emerging tokenized asset space, market frictions may delay convergence. The timing depends on market dynamics and participation levels.

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