Binance to launch second reward-bearing margin asset LDUSDt

Binance is launching a new “reward-bearing margin asset” LDUSDt, which the company says is not a stablecoin.

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. Binance launched its first reward-bearing margin asset, 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:

“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.“

Related: Binance to purge 14 tokens following ‘vote to delist’ process

A deeply integrated token

According to Binance, 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 told Cointelegraph:

“[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 had not responded to Cointelegraph’s questions regarding potential risk implications associated with this system by the time of publication.

Related: Nigerian court postpones Binance tax evasion case to end of April: Report

Binance continues to dominate crypto markets

Binance remains the world’s largest cryptocurrency exchange by trading volume. According to CoinGecko, the platform processed more than $16.5 billion in trades over a 24-hour period. Bitget followed with just under $5 billion in volume.

Data provided by the more popular but Binance-owned CoinMarketCap shows that $24.6 billion worth of trades took place on the exchange over the last 24 hours. The platform shows only $3.84 billion worth of trades on Bitget in the previous 24 hours.

Despite ongoing legal and regulatory challenges in multiple jurisdictions, Binance continues to grow its global influence. According to recent reports, 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. In late March, Teng 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.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions