Binance partners with Plasma, offering USDT yield on the Bitcoin network

Binance will transfer its USDT yield product to the Plasma network, a dedicated Bitcoin sidechain for stablecoins. This partnership will allow Binance users to earn profits from USDT and receive the upcoming token #XPL from Plasma.

Details of the partnership

When Plasma launches its mainnet in September, Binance users can deposit USDT to earn an estimated yield of 2% APR and a share of 1% of the total supply of token XPL. Less than an hour after the announcement, $250 million was deposited, indicating strong demand from the community.

Founder #Plasma , Paul Faecks, hopes that this partnership will create a network effect, making Plasma the world's leading stablecoin chain. He emphasizes that reaching Binance's 280 million users is crucial for scaling up.

Impact and context

The #Binance providing yield for USDT on a third-party network was made after the GENIUS Act was passed in the U.S. While this act prohibits stablecoin issuers from paying interest, it does not prevent third parties like Binance or Plasma from doing so.

Faecks believes that offering yield will significantly reduce the opportunity cost of holding stablecoins, making them a more attractive and efficient product for everyday users.