Bitcoin News Today: Binance and Plasma Redefine Stablecoin Utility With Yield and XPL Rewards

Binance has announced plans to transition its USDT yield offering onto the Plasma network once it launches its mainnet, expected in September. The exchange’s USDT yield program has already hit its $250 million deposit cap within less than an hour of opening on Binance Earn. The program allows users to lock USDT to earn a 2% annual percentage rate (APR) in USDT, alongside a share of Plasma’s upcoming XPL token. A total of 1% of the XPL token supply will be allocated to Binance users who participated in the yield program, even if the deposit cap is later raised.

Plasma, a stablecoin-focused blockchain project backed by Tether CEO Paolo Ardoino and PayPal co-founder Peter Thiel, aims to become the leading chain for stablecoin operations. The partnership with Binance is a strategic move to leverage the exchange’s massive user base—approximately 280 million Binance accounts—to drive network adoption and establish Plasma as a go-to infrastructure for stablecoin activity. CEO Paul Faecks emphasized the potential for a strong network effect, stating that widespread Binance user participation will significantly enhance Plasma’s global reach.

The Plasma USDT Locked Product, available on Binance Earn, operates on a first-come, first-served basis. Daily snapshots of user balances will be used to distribute rewards and allocate XPL tokens. Plasma has not ruled out raising the deposit cap, though the decision ultimately rests with Binance. The token generation event and mainnet launch are both scheduled for September, marking a critical milestone for the project’s development and adoption.

Stablecoins like USDT have gained prominence due to their peg to fiat currencies and their utility as a hedge against inflation. However, earning yield on stablecoins has typically been limited. Binance’s foray into yield-bearing stablecoin products represents a shift in the market, enabling users to generate returns on their holdings without sacrificing the stability of the underlying asset. Plasma’s platform adds an extra layer by offering gasless and private transactions, further enhancing the appeal of USDT usage on its network.

The regulatory landscape is also evolving, with the recent passage of the GENIUS Act in the U.S., which prohibits stablecoin issuers from offering yield but allows third parties to do so. Faecks noted that while he did not directly comment on regulatory specifics, he supports the industry’s increasing professionalism. The Plasma-Binance partnership appears to align with this trend by offering yield without violating current legal boundaries.

Plasma has previously attracted significant interest, including a $1 billion in USDT pre-deposits before its XPL token offering and $373 million raised in a public token sale. The project’s backing from prominent investors and its growing adoption signals strong market confidence. As the stablecoin ecosystem continues to mature, the integration of yield mechanisms may play a key role in driving mainstream adoption and utility.

Source:

[1] Binance USDT Yield Farming Hits Plasma Bitcoin Stablecoin ... (https://finance.yahoo.com/news/binance-usdt-yield-farming-hits-163704419.html)

[2] Plasma's $250M USDT Yield Program on Binance Filled in ... (https://finance.yahoo.com/news/plasmas-250m-usdt-yield-program-144627485.html)

[3] Binance USDT Yield Farming Hits Plasma Bitcoin ... (https://decrypt.co/336040/binance-usdt-yield-farming-plasma-bitcoin-stablecoin-network)