What Is LDUSDT by Binance?

Binance, the world’s largest cryptocurrency exchange, has announced the launch of LDUSDT — a new reward-bearing margin asset. Unlike typical stablecoins, LDUSDT offers a dual purpose: it can be used as margin for trading USDⓈ-M Futures while also generating real-time APR rewards from Binance’s Simple Earn Flexible Products.

The introduction of LDUSDT marks a continued effort by Binance to enhance capital efficiency and give users more control over their crypto assets.

According to Jeff Li, VP of Product at Binance, LDUSDT “brings more utility to users” and “lets their assets work for them.” It’s part of Binance’s broader strategy to combine income generation with capital use.

What Is LDUSDT?

LDUSDT stands for “Locked Dollar USDT,” a new type of margin asset designed to bring added utility to users holding USDT on Binance.

It allows users to:

• Trade USDⓈ-M Futures while using LDUSDT as margin
• Earn real-time APR rewards simultaneously
• Maintain flexibility similar to Simple Earn USDT Flexible Assets

Although it’s based on Tether’s USDT, LDUSDT functions differently. It’s not a stablecoin in itself but a product that wraps user-subscribed USDT into a tradable and interest-bearing format.

Here’s how it works:

• Users who’ve subscribed to Simple Earn USDT Flexible Products can convert that balance into LDUSDT.
• Once swapped, the asset moves to your Futures Wallet.
• You can then use it as margin in USDⓈ-M Futures trading—without giving up your real-time APR earnings.

In short: You earn Simple Earn rewards while also using your funds for futures trading.

It’s like staking your capital and trading it at the same time.

Key Features of LDUSDT

• Reward-Bearing Margin Asset: It acts as a trading margin but also earns APR like a savings product.
• Integrated with Simple Earn: The yield is powered by Binance’s Simple Earn Flexible Product infrastructure.
• Futures Margin Ready: Can be used directly as USDⓈ-M Futures margin in Multi-Asset Mode.
• Auto Wallet Transfer: Once converted, LDUSDT is moved to the user’s Futures Wallet automatically.
• Not a Stablecoin: While linked to USDT, LDUSDT operates as a Binance-native wrapped asset with distinct utility.

LDUSDT vs. Traditional Stablecoins

Most stablecoins like USDT or USDC are passive in nature. You use them for transfers, trading, or hedging against volatility. They sit in wallets and don’t do much unless manually staked or deployed into DeFi.

LDUSDT changes that.

With LDUSDT, your stablecoin:

• Generates passive yield (via APR from Simple Earn)
• Works as collateral in margin trading
• Keeps earning rewards in real time
• Doesn’t need complex DeFi protocols to be useful

Traditionally, users had to choose: either lock their funds in yield products or use them for trading. With LDUSDT, Binance is trying to eliminate that trade-off.

Binance Doubles Down on Margin Products

This is Binance Futures’ second reward-bearing margin asset. The first, BFUSD, offered users the ability to earn income from Binance’s internal investment and hedging strategies. With LDUSDT, Binance has expanded its approach by incorporating Simple Earn rewards directly into the margin trading ecosystem.

A spokesperson told Cointelegraph:

“LDUSDT gives users’ USDT more utility by converting it into a tradable asset for Futures, without losing access to their ongoing rewards.”

While LDUSDT seems like a win-win, Binance hasn’t shared much about potential risks. For example:

• What happens during extreme market volatility?
• Is the Real-Time APR fixed or variable?
• Will rewards be affected if LDUSDT is used as margin for leveraged trades?

As with all financial products, users should read the fine print and monitor announcements.

Binance says more information will be available on its website and app soon. No fixed date has been shared, but an April launch is expected.