Binance has rolled out LDUSDT, a new yield-bearing margin asset that enables futures traders to earn passive income while actively engaging in leveraged markets. The launch represents Binance’s latest move to merge passive yield strategies with the dynamic world of futures trading.
LDUSDT Combines Yield and Utility
According to Binance, users can convert their Tether (USDT) into LDUSDT via the Simple Earn platform. Once converted, LDUSDT can be used as margin collateral for USDⓈ-M futures contracts, all while continuing to accrue rewards.
This dual functionality marks a notable evolution from Binance’s earlier yield-bearing product, BFUSD, which launched in November 2023. While BFUSD offers a base annual percentage yield (APY) of 2.85%, it cannot be used for trading purposes. LDUSDT, on the other hand, bridges that gap by delivering yield benefits without sacrificing trading flexibility.
Part of a Larger Trend
The LDUSDT launch reflects a growing trend across centralized exchanges (CEXs) to develop native yield-generating assets. These products cater to a new breed of users who want to maximize capital efficiency — earning rewards on idle assets while also using them in various trading environments.
Other exchanges have made similar strides. Coinbase, for instance, promotes USD Coin (USDC) within its Base Layer 2 network, offering a yield of 4.1% APY. Bybit’s Earn Hub provides flexible and fixed-term investment options using USDT and USDC, while OKX has partnered with protocols like Origin Dollar (OUSD) to provide returns as high as 3.85% APY.
These offerings highlight an industry-wide shift toward hybrid financial tools that blend traditional yield farming concepts with trading utility.
Final Thoughts
With LDUSDT, Binance aims to enhance its futures trading ecosystem while offering users additional value through passive income opportunities. As yield-bearing margin assets gain popularity, centralized platforms may continue to innovate in this space — combining DeFi-like rewards with the trust and liquidity of established exchanges.
For active traders looking to optimize idle funds without missing out on potential returns, LDUSDT could represent the next step forward in capital efficiency.
