Binance is set to introduce LDUSDT, a new token that will serve as a reward-bearing margin asset for Futures trading. This announcement was made in a statement released on April 9.
LDUSDT is not just another trading tool; it is designed to provide users with a passive income stream. By participating in futures trading with LDUSDT, users can also earn yields on their investments.
This margin asset can be used across various supported trading pairs and multi-asset modes, allowing users to maintain flexibility in their trading strategies without sacrificing earning potential. Binance previously released BFUSD, another reward-bearing margin token, and both BFUSD and LDUSDT are structured to generate APY through Binance’s internal hedging and investment activities.
Although Binance has not confirmed an official release date for LDUSDT, the asset is expected to launch soon on the Binance website and app. Once available, Binance users can convert their USDT holdings from Binance’s Simple Earn Flexible Products into LDUSDT.
It’s important to note that despite being pegged to USDT in value, LDUSDT should not be mistaken for a stablecoin. Binance clarified that LDUSDT is a crypto asset specifically designed for Futures trading margin, while also allowing users to earn Simple Earn Real-Time APR rewards.
Stablecoins are typically pegged to fiat currencies like the US dollar and backed by reserves such as cash or Treasury bonds. However, Binance’s distinction is crucial as US regulators continue to scrutinize yield-bearing stablecoins. Current stablecoin bills in US Congress exclude interest-generating stablecoins, and the SEC has not provided guidance on such products.
Coinbase CEO Brian Armstrong has advocated for more flexible policies, believing that earning interest on digital dollars could benefit the economy and improve financial access.
In conclusion, Binance’s upcoming release of LDUSDT offers users an innovative way to participate in futures trading while earning rewards. This new token provides a unique opportunity for users to maximize their trading strategies and potential earnings.