Binance unveils LDUSDT reward token for futures trading and passive income

Binance has announced the upcoming release of LDUSDT, a new token designed to serve as a reward-bearing margin asset for Futures trading, according to an April 9 statement.

Binance explained that LDUSDT is not just another trading tool—it’s also a vehicle for passive income. It enables users to participate in futures trading while simultaneously earning yields.

LDUSDT

As a margin asset, it can be used across various supported trading pairs and multi-asset modes. This feature allows users to maintain flexibility in trading strategies without sacrificing earning potential.

Meanwhile, the asset follows Binance’s earlier release of BFUSD, another reward-bearing margin token. Both BFUSD and LDUSDT are structured to generate APY through Binance’s internal hedging and investment activities.

While no official release date has been confirmed, Binance stated that the asset will soon launch on its website and app.

Once the token becomes available, Binance users interested in the offering can convert their USDT holdings from Binance’s Simple Earn Flexible Products into LDUSDT.

‘Not stablecoin’

Despite being pegged to USDT in value, Binance has clarified that LDUSDT should not be confused with a stablecoin.

According to the exchange:

“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.”

Stablecoins are typically pegged to fiat currencies like the US dollar and backed by reserves such as cash or Treasury bonds. These assets are designed to maintain price stability and have become one of the emerging industry’s most prominent use cases over the past years.

Considering this, Binance’s distinction is especially important as US regulators continue to scrutinize yield-bearing stablecoins.

Current stablecoin bills in US Congress explicitly exclude interest-generating stablecoins, and the US Securities and Exchange Commission (SEC) has also refrained from offering guidance on such products.

However, Coinbase CEO Brian Armstrong has called for more flexible policies, arguing that earning interest on digital dollars could strengthen the economy and improve financial access.