Binance to Debut Reward-Bearing Asset For Its Futures Market

Binance Futures will this month debut a new yield-bearing product, LDUSDT, allowing traders to earn rewards that can be used for futures trading, the crypto exchange giant announced on Wednesday.

LDUSDT is not a stablecoin or swappable token, Binance said, but users will be able to trade Tether (USDT) for LDUSDT via the company’s Simple Earn Flexible Products to use as collateral for speculating in futures. 

Futures trading is when traders buy and sell contracts that bet on the future price of an asset. 

“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,” Binance VP of product Jeff Li said in a statement.  

Binance’s latest initiative follows the successful introduction of another reward-bearing margin asset, BFUSD, last November.

BFUSD enables users to generate returns on qualifying balances in their futures accounts and can be used as margin in futures accounts with multiple assets while also earning rewards. 

These products come as crypto and traditional finance companies try to address the rising demand for crypto products. 

Traders using Binance can already earn USDT—the biggest stablecoin and the third biggest digital asset—via the exchange’s Simple Earn USDT Flexible Products service.

Assets contracted on the Simple Earn platform can be used as collateral for flexible loans the company offers, and Binance, the company’s Binance Pay, which allows users to pay and receive pay in crypto. 

Li added that their futures products “are among the most popular in the market. “LDUSDT is a useful way to help our users explore more opportunities on Binance,” he said. 

CoinGecko data shows that Binance Futures is the biggest derivatives exchange in the crypto market, with a 24-hour trading volume of $129.7 billion.

Edited by Sebastian Sinclair