Binance – the world's largest cryptocurrency exchange – announces the upcoming launch of LDUSDT, a new reward-bearing margin asset, promising to allow users to trade futures contracts while also earning APR interest. Following the success of BFUSD, LDUSDT is expected to open up capital optimization opportunities for millions of traders. Could this product truly be a 'catalyst' for the crypto market?
LDUSDT: A Dual Solution for Traders
According to an announcement from Binance on the evening of April 9, 2025, #LDUSDT is the second reward-bearing margin asset after BFUSD (launched in November 2024), designed specifically for the futures trading platform. This product allows users to convert USDT locked in Simple Earn USDT Flexible – a service that helps earn passive income – into LDUSDT. Notably, after conversion, users can use LDUSDT as collateral for futures trading while still receiving real-time APR rewards.
Previously, Binance users faced a tough choice: either lock USDT in Simple Earn to earn interest or withdraw to trade futures, forfeiting passive income. LDUSDT solves this problem by combining both features into one product. A Binance representative stated: 'Users just need to enroll in Simple Earn with USDT, then convert the locked USDT into LDUSDT and immediately use it for futures trading, without losing the rewards they are earning.'
Specific Benefits of LDUSDT
LDUSDT offers many outstanding benefits:
Stable profit margin: The APR of LDUSDT is currently around 1.5%, updated every minute. #Binance guarantees this APR will never be negative, ensuring users always have profit, albeit small, even in a volatile market.
Increased capital efficiency: Users do not need to choose between 'earning interest' and 'trading.' LDUSDT allows for both passive rewards and participation in the futures market – where leverage can be utilized to increase profits.
High flexibility: Users can swap LDUSDT back to USDT at any time through the USDⓈ-M wallet, ensuring flexibility in capital management.
Compared to BFUSD, LDUSDT is simpler. #BFUSD requires complex delta-hedging strategies between the spot and futures markets, while LDUSDT only needs a direct swap from USDT Simple Earn, without the need for buybacks or conversions. Jeff Li, Vice President of Product at Binance, emphasized: 'LDUSDT helps users maximize their capital – serving both as a margin asset for trading and as a source of rewards, while still allowing for flexible cash flow management when needed.'
Launch Timing and Potential Impact
LDUSDT is expected to launch in April 2025, although the specific timing has not been announced. With over 10 million active users on Binance Earn (144% TVL increase in 2024) and 250 million global users, LDUSDT has significant potential to attract traders. In particular, those who have locked capital in Simple Earn but want to participate in the futures market will benefit the most.
Binance Futures also recorded impressive growth: daily trading increased by 106% and average trading volume increased by 19% in 2024. As the largest derivatives exchange (24-hour trading volume reached $129.7 billion, according to CoinGecko), the launch of LDUSDT is part of Binance's long-term strategy to enhance the utility of user assets, preventing them from 'sitting idle' without generating profit.
Market Context and Significance of LDUSDT
LDUSDT launches amidst many challenges in the crypto market: capitalization decreased by 11.65% ($2.88 trillion) in Q1/2025, Bitcoin down 12% ($84,900), and Ethereum down 45% ($1,830). However, products like LDUSDT can bring renewed confidence. The combination of passive income and futures trading not only increases flexibility but also encourages capital flow back into the market.
LDUSDT is also the latest product in Binance's series of innovations, following services like 'Vote to List', 'Vote to Delist', and Binance Alpha. This shows that Binance is continuously innovating to maintain its leading position, especially in the face of fierce competition from exchanges like Coinbase (which has just submitted an application to launch XRP futures contracts) and increasingly strict regulations in the USA and EU.
Conclusion: New Opportunities for Crypto Investors
LDUSDT is an important advancement for Binance, providing a dual solution for traders: earning passive income while participating in the futures market. With a never-negative APR of 1.5% and high flexibility, this product promises to attract millions of users, especially in a crypto market that needs positive 'catalysts.' Although the official launch date has not been announced, LDUSDT is certainly a product to look forward to, opening up capital optimization opportunities for investors. Can LDUSDT help Binance continue to strengthen its leading position? Let's wait and see!
Risk warning: Futures trading and crypto investing carry high risks due to price volatility and leverage. Please consider carefully before participating.