A new “reward-bearing margin asset” known as LDUSDt is being introduced, and it’s important to note that it is not classified as a stablecoin.
As outlined in an April 9 announcement, LDUSDt can be obtained by exchanging Tether’s USDt that is deposited in the Simple Earn yield product. The company has emphasized that holders of LDUSDt will still receive yield rewards through Simple Earn, even while engaging in margin trading with this token.
This is the second instance of launching a reward-bearing margin asset, as the firm previously introduced its first such asset, BFUSD, in 2024. During that launch, clarity was provided that this asset was “not a stablecoin,” addressing user concerns and comparisons to the collapsed TerraUSD (UST) token.
In the recent announcement, there was a reiteration that LDUSDt is not a stablecoin:
“LDUSDT is not a stablecoin but a crypto asset that can be used as Futures trading margin, while allowing users to earn Simple Earn Real-Time APR rewards.”
Related: 14 tokens to be removed following a voting process
A deeply integrated token
This new token can be utilized as a margin asset within multi-asset mode on the exchange’s futures platform, also accumulating real-time annual percentage yield rewards.
The specific launch timing has yet to be confirmed, with indications that it “will soon be accessible on the website and app.” A spokesperson conveyed:
“[LDUSDt] enhances the utility of USDT by converting it into a tradable asset for Futures without losing ongoing rewards. When users exchange their subscribed USDT for LDUSDT, the funds are automatically transferred to their Futures Wallet, making them available as margin in Multi-Asset Mode.”
As of the time of publication, there has been no response concerning possible risk implications associated with this system.
Related: Tax evasion case postponed to late April: Report
Leading the crypto markets
The exchange maintains its position as the largest cryptocurrency trading platform worldwide. According to various sources, the platform registered over $16.5 billion in trades within a 24-hour period, while its closest competitor processed just under $5 billion in volume.
Data from a popular platform shows that trades amounting to $24.6 billion occurred in just 24 hours, with only $3.84 billion in trades noted for the competitor during the same timeframe.
Despite facing ongoing legal and regulatory issues across several jurisdictions, the company continues to expand its global reach. Recent reports indicate that the former CEO will begin advising the Kyrgyz Republic on blockchain and cryptocurrency regulations after signing a memorandum with the nation’s foreign investment agency.
Current CEO Richard Teng is also under scrutiny. He recently denied rumors during a March panel regarding discussions between the firm and parties related to former President Donald Trump.
Magazine: Concerns arise about potential conflicts of interest and insider trading in Trump’s crypto pursuits