Crypto powerhouse Binance is rolling out a new offering that merges passive income with active trading flexibility. The company has announced the upcoming launch of LDUSDT, a reward-bearing margin asset designed to provide real-time APR rewards while serving as futures trading collateral.
Passive Income Meets Trading Utility
LDUSDT allows users to convert their USDT holdings from the Binance Simple Earn Flexible Products into an asset that functions both as a yield generator and a futures trading margin. Once converted, users continue to earn APR rewards at prevailing rates, similar to their previous Simple Earn setup, while also gaining access to futures trading.
“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,” explained Jeff Li, VP of Product at Binance.
Building on Past Success: The BFUSD Precedent
This latest innovation comes on the heels of Binance’s introduction of BFUSD, a similar reward-bearing margin asset launched in November. BFUSD also provides passive income, primarily through delta hedging and staking strategies. While it cannot be traded or withdrawn directly, users can redeem BFUSD for USDT.
To ensure user confidence, Binance maintains that BFUSD’s reward rate will never fall below zero, backed by a reserve fund to offset any negative funding fees.
A New Approach to Engagement and Liquidity
The rollout of LDUSDT aligns with Binance’s broader strategy to increase user participation in both passive and active trading environments. By allowing assets to be used for futures trading without forgoing rewards, Binance aims to deepen engagement and drive volume on its futures platform—without cannibalizing funds from its Simple Earn products.
This blend of utility and flexibility could help Binance further solidify its position as the go-to exchange for both casual earners and active traders.
Rapid Growth in User Base and Volume
The move comes amid impressive growth metrics for Binance Earn. The platform now boasts over 10 million active users and saw a 144% increase in Total Value Locked (TVL) during 2024. Simultaneously, Binance Futures recorded a 106% rise in average daily transactions and a 19% uptick in average daily trading volume.
Launch Timeline and Outlook
Binance plans to introduce LDUSDT later this month, with more details to be released closer to launch. Given the success of BFUSD and the continued expansion of its user base, LDUSDT may become a key component of Binance’s evolving financial ecosystem.