Binance Launches LDUSDT: New Reward-Bearing Margin Asset for Futures Trading

Binance, a prominent global cryptocurrency exchange, is set to introduce LDUSDT, a new reward-bearing margin asset. This asset will allow users to earn rewards while holding it, marking the second time Binance has launched such a product. The first reward-bearing margin asset, BFUSD, was introduced in 2024. LDUSDT will offer users the flexibility of futures trading while accruing rewards, providing a dual benefit to USDT holders. The launch is scheduled for April 2025, and users can obtain LDUSDT by swapping their USDT from Binance's Simple Earn product. This move is part of Binance's ongoing efforts to innovate and provide more value to its users. The introduction of LDUSDT is expected to enhance the trading experience on the platform, offering users a new way to earn passive income while engaging in futures trading.

LDUSDT is not a stablecoin or swappable token, but users will be able to trade Tether (USDT) for LDUSDT via the company’s Simple Earn Flexible Products to use as collateral for speculating in futures. Futures trading is when traders buy and sell contracts that bet on the future price of an asset. “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,” Binance VP of product Jeff Li said in a statement.

These products come as crypto and traditional finance companies try to address the rising demand for crypto products. Traders using Binance can already earn USDT—the biggest stablecoin and the third biggest digital asset—via the exchange’s Simple Earn USDT Flexible Products service. Assets contracted on the Simple Earn platform can be used as collateral for flexible loans the company offers, and Binance, the company’s Binance Pay, which allows users to pay and receive pay in crypto.

Li added that their futures products “are among the most popular in the market. “LDUSDT is a useful way to help our users explore more opportunities on Binance,” he said.