Binance Launches LDUSDt, Second Reward-Bearing Margin Asset

Binance, a prominent cryptocurrency exchange, has announced the launch of LDUSDt, its second reward-bearing margin asset. This new asset is designed to offer users a unique blend of stability, utility, and passive income opportunities. Unlike traditional stablecoins, which are primarily used as trading collateral or mediums of exchange, LDUSDt provides users with yield rewards simply for holding the asset in their wallets. This innovative feature sets LDUSDt apart in the rapidly evolving cryptocurrency market.

According to an April 9 announcement, LDUSDt can be obtained by swapping Tether’s USDt deposited in the firm’s Simple Earn yield product. Binance stated that holders of LDUSDt will continue to earn yield rewards through Simple Earn, even while using the token for margin trading. This marks the second time Binance has launched a reward-bearing margin asset, the first being BFUSD in 2024. At the time of the launch, Binance had stepped in to clarify that “it is not a stablecoin” in response to user concerns and comparisons to the failed TerraUSD (UST) token. In its latest announcement, Binance preemptively reiterated that LDUSDt is not a stablecoin, stating that “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.”

LDUSDt can be used as a margin asset in multi-asset mode on the exchange’s futures platform. It also accrues real-time annual percentage yield rewards. The exact launch time is yet to be determined, with the announcement noting that it “will be available on the Binance website and app soon.” A Binance spokesperson stated that LDUSDt gives users’ USDt more utility by converting it into a tradable asset for Futures, without losing access to their ongoing rewards. When users swap their subscribed USDt for LDUSDt, the funds are automatically moved into their Futures Wallet, where they can be used as margin in Multi-Asset Mode.

Binance remains the world’s largest cryptocurrency exchange by trading volume. Despite ongoing legal and regulatory challenges in multiple jurisdictions, Binance continues to grow its global influence. The firm’s former CEO, Changpeng “CZ” Zhao, will begin advising the Kyrgyz Republic on blockchain and crypto-related regulation and tech after signing a memorandum of understanding with the country’s foreign investment agency. Meanwhile, current CEO Richard Teng remains in the spotlight, having denied reports that Binance.US was in deal talks with entities affiliated with US President Donald Trump during a March 18 panel at Blockworks’ 2025 Digital Asset Summit in New York.