Binance is launching a new “reward-bearing margin asset” LDUSDt, which the company says is not a stablecoin.
According to an April 9 announcement, LDUSDt can be obtained by swapping Tether’s USDt deposited in the firm’s Simple Earn yield product. Binance stated that holders of LDUSDt will continue to earn yield rewards through Simple Earn, even while using the token for margin trading.
This marks the second time Binance has launched a reward-bearing margin asset. Binance launched its first reward-bearing margin asset, BFUSD, in 2024. At the time of the launch, Binance had stepped in to clarify that “it is not a stablecoin” in response to user concerns and comparisons to the failed TerraUSD (UST) token.
In its latest announcement, Binance preemptively reiterated that LDUSDt is not a stablecoin:
“LDUSDT is not a stablecoin but a crypto asset that can