Binance's Second Reward-Bearing Asset LDUSDT to Launch Soon

Binance Futures will soon introduce LDUSDT, a reward-bearing margin asset that accrues rewards to holders.

Traders can swap their tether (USDT) on Binance's Simple Earn Flexible Product for LDUSDT, which can then be utilized as margin for stablecoin-margined futures trading.

Binance said LDUSDT builds on the success of BFUSD, its inaugural reward-bearing margin asset, which debuted earlier and enabled users to earn annual percentage yields (APY) through the exchange’s hedging and investment strategies. “After the launch of our first reward-bearing margin asset, BFUSD, was positively received by users, we are pleased to introduce yet another product to bring more utility to our users," Jeff Li, VP of Product at Binance said in a statement. "LDUSDT increases capital efficiency for users and lets users put their assets to work for them as both a reward-earning and liquid trading margin asset, all while retaining flexibility to redeploy their capital at any time.

As such, LDUSDT is not a stablecoin but a crypto token designed specifically for use as futures trading margin while simultaneously offering reward-earning potential. As of Wednesday, annualized yields for holding the token are around 1.5%, per The Block, and will be updated on a minute-by-minute basis.