BINANCE TO LAUNCH SECOND REWARD-BEARING MARGIN ASSET LDUSDT

Last updated: June 19, 2025, 21:27 | Written by: Changpeng Zhao

Binance, the world's leading cryptocurrency exchange, is set to introduce a groundbreaking new asset to its platform: LDUSDt.Following the successful launch of BFUSD in 2025, LDUSDt is poised to become the second reward-bearing margin asset on Binance. Binance ensures that the reward rate for BFUSD will never drop below zero, supported by a reserve fund to cover all negative funding fees. 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, said Jeff Li, VP of ProductThis innovative token isn't a stablecoin, but rather a crypto asset designed with a dual purpose in mind: providing a liquid trading margin while simultaneously generating returns for its holders. Binance Futures is launching LDUSDT, a reward-bearing margin asset based on Tether s popular stablecoin. This product will focus on offering flexibility to the user, who can trade LDUSDT while reaping APR rewards. This is the second product of this nature that Binance Futures has offered following its BFUSD launch last November.This means users can trade on Binance's futures platform and continue to earn rewards, maximizing their capital efficiency. LDUSDT will be Binance s second reward-bearing margin asset, following the earlier release of BFUSD. The new token isn t a stablecoin but rather a crypto asset created to serve a dual purpose providing trading margin while generating returns for holders.By swapping your USDT via Binance’s Simple Earn Flexible Product, you can access LDUSDt and begin taking advantage of its unique benefits.This launch underscores Binance's commitment to providing users with innovative financial tools that optimize their trading experience and empower them to earn passive income while actively participating in the market. After BFUSD, LDUSDT is Binance s second reward-bearing non-stablecoin margin asset. The forthcoming launch of LDUSDT was announced today by Binance, the world s leading blockchain ecosystem that powers the biggest cryptocurrency exchange in terms of both trading volume and users.Think of it as putting your assets to work, earning rewards and retaining flexibility to redeploy capital when needed.

Understanding LDUSDt: A Reward-Bearing Margin Asset

LDUSDt represents a significant step forward in the evolution of cryptocurrency trading. Binance is set to launch LDUSDt, a new reward-bearing margin asset that users can obtain by swapping USDt from its Simple Earn product, emphasizing that it is not a stablecoin. Total views 9Unlike traditional stablecoins, which are pegged to a fiat currency like the US dollar and offer price stability, LDUSDt functions as a dynamic asset that generates rewards while serving as margin for 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 exchangeThis dual functionality opens up new possibilities for traders seeking to enhance their returns.

What Makes LDUSDt Different from Stablecoins?

The key difference between LDUSDt and stablecoins lies in its reward-bearing nature. LDUSDT follows the launch of BFUSD, Binance's first reward-bearing margin asset, introduced in 2025. Unlike stablecoins, LDUSDT is a crypto asset that enables traders to earn rewards withoutWhile stablecoins aim to maintain a stable value, LDUSDt actively generates returns for its holders through Simple Earn Real-Time APR rewards.This means that users who hold LDUSDt can earn passive income simply by holding the asset.

How to Obtain LDUSDt

Acquiring LDUSDt is a straightforward process. Key Highlights of LDUSDT. Reward-bearing Margin Asset: LDUSDT is not a stablecoin but a crypto asset that can be used as Futures trading margin, while allowing users to earn Simple Earn Real-Time APR rewards. Futures Margin: LDUSDT can be used as USDⓈ-M Futures trading margin in Multi-Asset Mode. USDT Flexible Assets: Users subscribed toUsers can swap their USDT, the popular stablecoin, for LDUSDt through Binance's Simple Earn Flexible Product. LDUSDT follows the launch of BFUSD, Binance's first reward-bearing margin asset, introduced in 2025. 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.This allows users to seamlessly transition their existing USDT holdings into LDUSDt and begin earning rewards.

LDUSDt and Futures Trading: A Powerful Combination

LDUSDt's primary utility lies in its ability to be used as margin for USDⓈ-M Futures trading, especially in Multi-Asset Mode.This provides traders with enhanced flexibility and capital efficiency, as they can use their LDUSDt holdings to open and maintain futures positions.

Multi-Asset Mode Explained

Binance's Multi-Asset Mode allows traders to use a variety of crypto assets, including LDUSDt, as margin for their futures trades.This feature provides greater diversification and risk management opportunities, as traders are not limited to using only USDT as margin.

Benefits of Using LDUSDt as Futures Margin

Using LDUSDt as margin for futures trading offers several advantages:

Earning Rewards While Trading: Traders can earn Simple Earn Real-Time APR rewards on their LDUSDt holdings while using them as margin, effectively maximizing their returns.
Increased Capital Efficiency: By using LDUSDt as margin, traders can free up other assets for other purposes, such as investing in other cryptocurrencies or participating in other DeFi activities.
Flexibility: Traders can easily swap USDT for LDUSDt and vice versa, providing them with the flexibility to adjust their portfolio based on market conditions and their individual investment strategies.

The Success of BFUSD: Paving the Way for LDUSDt

The launch of LDUSDt builds upon the success of BFUSD, Binance's first reward-bearing margin asset, introduced in 2025. BFUSD demonstrated the viability of this innovative asset class and paved the way for the development of LDUSDt.

What Made BFUSD Successful?

BFUSD's success can be attributed to its ability to offer users a unique combination of rewards and utility.By allowing users to earn annual percentage yields (APY) through the exchange while simultaneously using it as margin for futures trading, BFUSD provided a compelling value proposition that attracted a significant number of users.

Lessons Learned from BFUSD

The experience gained from the launch and operation of BFUSD provided Binance with valuable insights that were incorporated into the development of LDUSDt. Binance Futures will launch LDUSDT, a margin asset that earns rewards for holders. Traders can exchange USDT for LDUSDT via Binance's Simple Earn Flexible Product. LDUSDT will be used as margin for stablecoin-margined futures trading. This follows the introduction of BFUSD, the first reward-bearing margin asset on Binance. LDUSDT is not a stablecoin; it is a crypto token designed for futuresThese insights included:

The importance of a robust and transparent reward mechanism
The need for seamless integration with Binance's existing trading platform
The demand for a user-friendly interface and clear communication about the asset's features and benefits

Ensuring Reward Stability: Binance's Commitment

Binance understands the importance of maintaining a stable and reliable reward rate for its reward-bearing margin assets. Binance is launching a new reward-bearing margin asset LDUSDt, which the company says is not a stablecoin. According to an April 9 announcement, LDUSDt can be obtained by swapping Tether sTo ensure this, Binance has implemented measures to protect the reward rate and mitigate potential risks.

The Reserve Fund: Protecting Against Negative Funding Fees

Binance ensures that the reward rate for BFUSD (and presumably also for LDUSDt) will never drop below zero by utilizing a reserve fund to cover all negative funding fees.This provides users with peace of mind knowing that their rewards are protected, even during periods of market volatility.

Transparency and Communication

Binance is committed to maintaining transparency and open communication with its users regarding the reward rate and any factors that may affect it.This includes providing regular updates on the performance of the reserve fund and any adjustments to the reward mechanism.

LDUSDt: Enhancing Capital Efficiency and Flexibility

According to Jeff Li, VP of Product at Binance, LDUSDt increases capital efficiency for users and lets them 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.

Unlocking the Potential of Your Assets

LDUSDt empowers users to unlock the full potential of their assets by providing them with the opportunity to earn rewards while actively participating in the cryptocurrency market.This combination of rewards and utility makes LDUSDt a valuable tool for traders of all levels of experience.

Maintaining Flexibility in a Dynamic Market

The ability to easily swap USDT for LDUSDt and vice versa allows users to maintain flexibility in a dynamic market.This is particularly important in the cryptocurrency market, where prices can fluctuate rapidly and investment strategies need to be adjusted accordingly.

How LDUSDt Works in Practice: Examples

To better understand how LDUSDt can be used in practice, let's consider a few examples:

Scenario 1: Earning Rewards While Holding: A user swaps 10,000 USDT for 10,000 LDUSDt and simply holds the asset in their Binance account.Over time, they earn Simple Earn Real-Time APR rewards on their LDUSDt holdings, effectively generating passive income.
Scenario 2: Using LDUSDt as Margin for Futures Trading: A trader wants to open a long position on Bitcoin futures.Instead of using USDT as margin, they use LDUSDt.This allows them to earn rewards on their margin while simultaneously participating in the futures market.
Scenario 3: Redeploying Capital Based on Market Conditions: A user holds LDUSDt and earns rewards.They notice that the price of Ethereum is dropping and believe it is a good buying opportunity.They quickly swap their LDUSDt back to USDT and use the USDT to purchase Ethereum.

Benefits of LDUSDt: A Summary

Here's a summary of the key benefits of using LDUSDt:

Earn Simple Earn Real-Time APR rewards on your holdings.
Use it as margin for USDⓈ-M Futures trading in Multi-Asset Mode.
Increase capital efficiency by freeing up other assets.
Maintain flexibility to redeploy capital based on market conditions.
Benefit from Binance's robust risk management and reward stability measures.

Common Questions About LDUSDt

Here are some frequently asked questions about LDUSDt:

Is LDUSDt a stablecoin?

No, LDUSDt is not a stablecoin.It is a crypto asset that generates rewards while serving as margin for futures trading.

How do I obtain LDUSDt?

You can obtain LDUSDt by swapping USDT through Binance's Simple Earn Flexible Product.

What can I use LDUSDt for?

You can use LDUSDt as margin for USDⓈ-M Futures trading in Multi-Asset Mode and earn Simple Earn Real-Time APR rewards on your holdings.

What is the difference between LDUSDt and BFUSD?

LDUSDt follows the launch of BFUSD, Binance's first reward-bearing margin asset.Details on the specific differences between the two will likely be released by Binance as LDUSDt launches.

How does Binance ensure the stability of the reward rate?

Binance utilizes a reserve fund to cover all negative funding fees and protect the reward rate for BFUSD.It is likely a similar mechanism will be in place for LDUSDt.

Potential Risks Associated with LDUSDt

While LDUSDt offers several benefits, it's crucial to acknowledge the potential risks involved:

Market Volatility: Like all cryptocurrencies, LDUSDt is subject to market volatility, which could impact its value.
Smart Contract Risks: Although Binance is a reputable exchange, there's always a potential risk associated with smart contracts and potential vulnerabilities.
Changes in Reward Rate: While Binance aims to maintain a stable reward rate, it's subject to change based on market conditions and other factors.

It's essential to conduct thorough research and understand the risks involved before investing in LDUSDt or any other cryptocurrency.

Conclusion: LDUSDt - A New Era for Margin Trading

The launch of LDUSDt marks a significant step forward in the evolution of cryptocurrency trading.By combining the benefits of a reward-bearing asset with the utility of a margin asset, LDUSDt offers users a unique opportunity to enhance their returns and optimize their capital efficiency.Building upon the success of BFUSD, LDUSDt is poised to become a popular choice for traders seeking to maximize their potential in the dynamic world of cryptocurrency futures trading. Binance to launch second reward-bearing margin asset LDUSDt, and it underscores their dedication to pushing boundaries and providing innovative financial tools.

Key Takeaways:

LDUSDt is a reward-bearing margin asset, not a stablecoin.
It can be used as margin for USDⓈ-M Futures trading in Multi-Asset Mode.
Users can earn Simple Earn Real-Time APR rewards on their holdings.
It increases capital efficiency and flexibility for traders.
The launch builds upon the success of BFUSD.

Are you ready to explore the world of reward-bearing margin assets?Visit Binance today to learn more about LDUSDt and start maximizing your trading potential!