Binance Launches LDUSDT: A Dual-Purpose Asset for Futures Trading and Yield Earnings

Binance, the leading global cryptocurrency exchange, has announced the introduction of LDUSDT—a novel product enabling users to engage in futures trading while earning rewards on locked USDT holdings. This innovation follows the rollout of BFUSD in November and aims to enhance capital efficiency by eliminating manual fund management between earning and trading. Here’s a detailed breakdown of the development and its implications for traders.

Binance Introduces LDUSDT to Combine Earning and Futures Trading

Binance, the world’s largest digital asset exchange by trading volume, is set to launch LDUSDT, a new product that allows users to trade crypto futures while earning additional benefits from their locked USDT funds. LDUSDT is designed as a reward-bearing non-stablecoin margin asset, following the earlier introduction of BFUSD in November. The new updates aim to improve capital efficiency and user experience by removing the need for users to choose between earning interest and maintaining trading volume.

Binance to Debut Reward-Bearing Asset LDUSDT for Futures Trading

Binance Futures will introduce LDUSDT, a new yield-bearing product, allowing traders to earn rewards that can be used for futures trading. LDUSDT is not a stablecoin or swappable token but can be traded for Tether (USDT) via Binance’s Simple Earn Flexible Products and used as collateral for futures speculation. According to Binance VP of product Jeff Li, LDUSDT increases capital efficiency and lets users put their assets to work as both a reward-earning and liquid trading margin asset.