Binance Launches BFUSD Stablecoin With 19.55% APY for Futures Traders

• Binance’s BFUSD offers 19.55% APY, rewarding users daily without staking or locking funds.
• BFUSD’s 105.54% collateralization ratio ensures stability, with a 1.1M USDT reserve backing it.
• BFUSD expands trading potential as 100% collateral in Multi-Asset Mode, enhancing user flexibility.

Binance has unveiled a new stablecoin, BFUSD, aimed at futures and perpetual traders with an annual percentage yield of 19.55%. Users can earn daily rewards simply by holding BFUSD in their Binance futures accounts. This does not require staking or locking funds.

Hassle-Free Earnings for Users

BFUSD offers an easy reward system for its holders. Users can acquire the stablecoin by swapping Tether USD (USDT). The system calculates rewards daily based on the lowest BFUSD balance captured from hourly snapshots. These rewards are then distributed directly to users’ UM Futures accounts.

Additionally, the stablecoin is backed by a reserve fund. As of November 17, the reserve holds 1.1 million USDT, ensuring stability. The collateralization ratio is maintained at 105.54%, which further supports its reliability.

BFUSD Participation Limits and Accessibility

Holding limits for BFUSD depend on a user’s VIP level on Binance. Users can increase these limits by completing know-your-customer processes and meeting trading volume thresholds. However, BFUSD is unavailable in regions like Brazil and areas governed by the Markets in Crypto-Assets regulation.

In Multi-Asset Mode, traders can use BFUSD as collateral with a 100% collateral ratio. This expands trading potential across various assets.

Competitive Market Landscape

Binance’s re-entry into the stablecoin market is signaled by the introduction of BFUSD following issues with BUSD. Regulators in the United States stopped the release of Binance USD in February 2023. Since then, Binance has steered users toward First Digital’s FDUSD stablecoin.

BFUSD now faces competition from other stablecoins like Ethena’s sUSDe, which offers 29% APY. Additionally, tokenized money funds such as BlackRock’s BUIDL further intensify market competition.

By introducing BFUSD, Binance strengthens its position in the crypto market. The stablecoin aims to attract traders with high yields and collateral benefits, despite regulatory hurdles.