$BNB Binance launches BFUSD, the 'digital dollar' that pays interest

This asset is not a stablecoin, but operates in a similar way on the exchange.

Binance launches a new 'digital dollar' that pays interest. Source: Pixabay.

Binance assures that the returns of BFUSD will never drop below zero.

There are some geographical restrictions for the use of BFUSD.

Binance, the largest cryptocurrency exchange in the world, presented BFUSD, a 'digital dollar' that pays interest. The launch will be tomorrow, November 27 at 2:00 AM (UTC).

The asset operates similarly to a stablecoin. Company spokespeople explained its operation.

As explained by Binance through a statement, "it is designed as a margin asset for futures trading, while offering passive rewards."

Furthermore, it explained that holders of the asset will be able to take advantage of a base annual percentage yield (APY) that "accumulates directly, even if they do not trade futures." Additionally, it clarified that those who engage in qualified futures activities with margin in stablecoins will receive an increased APY