Binance Launches LDUSDT for 1.5% APR and Futures Trading

Binance has introduced LDUSDT, a new margin asset designed to enhance capital efficiency and user engagement. This innovation allows users to trade futures while earning passive rewards, marking a significant evolution in how traders can utilize their funds. Traditionally, users participating in Binance’s Simple Earn Flexible Products would lock their USDT to earn passive interest, but these locked assets couldn’t be used for futures trading without full redemption. With LDUSDT, users can convert their flexible USDT deposits into a special token that retains the Simple Earn APR rewards, while also serving as eligible margin for USDⓈ-M Futures under Multi-Asset Mode.

The value proposition of LDUSDT lies in its dual-purpose design. It offers passive income by mirroring the APR earned by USDT in Simple Earn, updating in real time, with an estimated 1.5% APR. Additionally, LDUSDT can be directly used as collateral to open or maintain futures positions on Binance. The conversion process is seamless, allowing users to swap eligible USDT holdings in Simple Earn into LDUSDT within seconds, without interrupting their earnings. This flexibility enables crypto traders to maintain high liquidity while still earning passive returns, aligning with the growing demand among active investors seeking smarter ways to utilize idle capital.

According to Binance’s Product VP Jeff Li, “LDUSDT increases capital efficiency for users and enables assets to function both as earning vehicles and trading margin.” A major appeal of LDUSDT is its built-in protection against negative yields. Even during market downturns, users holding LDUSDT will continue to earn positive APR, just like they would with traditional USDT Flexible Products. This feature offers greater predictability for users who want to remain active in the market without compromising on risk management. Binance notes that the APR associated with LDUSDT follows the Simple Earn benchmark, meaning it adjusts dynamically—but always remains above zero. For retail and institutional users alike, this creates a stable yield environment, even while actively engaging with the volatile crypto futures market.

LDUSDT follows the release of BFUSD, Binance’s first reward-bearing futures margin asset launched in late 2024. While BFUSD includes returns from staking and hedging strategies, LDUSDT simplifies access by integrating seamlessly with existing USDT flexible holdings. The key differences are that BFUSD relies on Binance’s internal yield-generating strategies, while LDUSDT derives yield directly from Simple Earn APR, making it more transparent and accessible for everyday users. Binance highlights the fact that LDUSDT provides a simplified method, particularly for those who are already familiar with the UI of Simple Earn. This is in line with Binance’s overarching objective of making advanced financial tools available to users without compromising their usefulness. The platform now boasts over 10 million Simple Earn users, making LDUSDT a timely addition for maximizing utility across product lines.

LDUSDT will go live on Binance’s website and app in the coming days. Although no official launch date has been confirmed, Binance has stated that the rollout will be “as soon as possible.” The integration of LDUSDT reflects Binance’s growing emphasis on building multi-functional crypto assets that satisfy both passive and active investors. This innovation is expected to further enhance the platform’s appeal to a broader range of users, offering a unique blend of passive income and active trading opportunities.