New dual-purpose asset aims to boost capital efficiency by allowing simultaneous yield earning and margin trading.
Binance Expands Its Reward-Bearing Asset Lineup
Binance has unveiled LDUSDT, a new “reward-bearing margin asset” designed to bridge the gap between passive income and active trading. The asset enables users to earn rewards through the Simple Earn program while simultaneously using the same capital for perpetual futures trading on Binance Futures.
LDUSDT becomes the second such product from Binance, following BFUSD, as the exchange continues to push innovative tools aimed at increasing capital efficiency across its ecosystem.
Set to launch later in April 2025, LDUSDT is expected to open up a new avenue for users to manage their crypto more dynamically.
How LDUSDT Works
LDUSDT allows users subscribed to USDT Flexible Products under Binance’s Simple Earn program to convert their holdings into LDUSDT using a built-in swap function. This new asset is then automatically transferred to the user’s Futures account, where it can be used as margin to trade USDⓈ-M perpetual contracts.
What sets LDUSDT apart is that users continue to earn real-time APR rewards even while deploying the asset for futures trading allowing the same capital to generate returns through both passive and active strategies.
Users retain full control, with the ability to swap LDUSDT back to USDT at any time via the same interface.
A Move Toward Higher Capital Efficiency
Jeff Li, Binance’s Vice President of Product, emphasized the significance of LDUSDT for user capital management:
“LDUSDT increases capital efficiency for users. It lets users put their assets to work as both a reward-earning and liquid trading margin asset.”
The introduction of LDUSDT aligns with Binance’s broader strategy to integrate its products more closely, offering users a seamless and more productive experience.
Binance’s Growth Across Earn and Futures
The announcement comes amid strong performance across Binance’s financial product suite. In 2024, Binance Earn saw a 144% increase in Total Value Locked (TVL), while Binance Futures recorded a 106.2% jump in daily transactions, according to a press release shared with crypto.news.
With over 450 trading pairs, Binance remains the global leader in crypto derivatives trading by both volume and liquidity and LDUSDT may further strengthen that position by unlocking additional utility for idle assets.
Final Thoughts
LDUSDT represents a compelling new financial tool for crypto traders and investors looking to maximize their capital usage. By allowing users to earn passive income and actively trade with the same funds, Binance is pushing the boundaries of capital efficiency in the digital asset space.
As the feature rolls out later this month, it could mark a significant shift in how crypto exchanges integrate yield-generation and leveraged trading for retail and professional users alike.
