Binance has announced LDUSDT, a new ‘reward-bearing margin asset’ designed to give users more flexibility in how they use capital across its Earn and Futures platforms.
LDUSDT is the second such asset, following BFUSD, and is aimed at increasing users’ capital efficiency. It allows holders to participate in perpetual futures trading on Binance Futures while maintaining their reward-earning status from the Earn program.
LDUSDT will allow users subscribed to Simple Earn’s USDT Flexible Products to convert their assets into a futures trading margin, while continuing to receive real-time APR rewards.
Users can convert subscribed USDT to LDUSDT through a swap function and begin using it as margin in Multi-Asset Mode.
Once swapped, LDUSDT is automatically transferred to the user’s futures account. Users can trade with it on USDⓈ-M perpetual contracts and continue accruing APR rewards, essentially allowing the same funds to work in two ways.
They can also convert LDUSDT back to USDT (USDT) at any time through the same interface.
The asset is set to go live later in April 2025.
Binance’s growth
According to a press release shared with crypto.news, in 2024, Binance Earn saw 144% growth in TVL, while Binance Futures posted a 106.2% rise in daily transactions.
In discussing the benefits of the new financial tool, Jeff Li, VP of Product at Binance, highlighted its impact on capital efficiency.
“LDUSDT increases capital efficiency for users,” said Li. “It lets users put their assets to work as both a reward-earning and liquid trading margin asset.”
The exchange leads global crypto derivatives markets by volume and liquidity, with over 450 trading pairs.