Binance is launching LDUSDT, a new reward-bearing margin asset designed for its futures platform. This product allows users to convert their locked USDT, which is part of the Simple Earn Flexible Product, into LDUSDT. Users can then utilize this token as a margin asset for futures trading while still earning passive rewards. The reward is paid as a real-time annual percentage yield (APR), which is around 1.5% and updates every minute.

LDUSDT follows the launch of BFUSD, Binance's first reward-bearing margin asset, introduced in 2024. Unlike stablecoins, LDUSDT is a crypto asset that enables traders to earn rewards without sacrificing liquidity in margin trading. It enables users to trade on Binance’s futures platform while continuing to earn rewards. The APR for LDUSDT is guaranteed never to drop below zero, ensuring users maintain positive returns on their holdings.

To use LDUSDT, users first subscribe to Binance’s Simple Earn product, which locks up USDT for rewards. They can then convert this locked USDT into LDUSDT, which automatically moves into their Futures Wallet for margin use. This integration is designed to give users more flexibility, allowing them to earn rewards and trade margin assets simultaneously.

Binance’s introduction of LDUSDT comes as part of its ongoing efforts to provide more utility to its users. After the success of BFUSD, Binance has moved forward with LDUSDT to enhance capital efficiency for traders. This new offering allows users to earn rewards from their locked assets without having to choose between earning passive rewards and using funds for trading. Binance VP of Product Jeff Li stated that LDUSDT will help users maximize the potential of their assets while providing the flexibility to redeploy their capital at any time.

Binance has emphasized that LDUSDT is not a stablecoin but a cryptocurrency specifically designed for margin trading on the futures platform. This product allows for multi-asset mode trading and offers reward-earning potential for users involved in stablecoin-margined futures trades. Binance has not yet confirmed the exact date for the product’s launch but has stated it will be available soon.

Despite facing ongoing legal challenges, Binance continues to maintain its dominance as the world’s largest cryptocurrency exchange by trading volume, claiming over 250 million users globally. With the introduction of products like LDUSDT, Binance continues to expand its offerings, helping users make the most of their assets while navigating the volatile world of cryptocurrency trading.