TechFlow reports that on November 26, according to The Block, Binance announced the launch of its yield-bearing margin asset BFUSD, which will officially go live on November 27 at 10:00 (UTC+8). Users can earn passive income by holding or trading contracts, and Binance guarantees that the annual percentage yield (APY) will never fall below zero.
According to a Binance spokesperson, BFUSD holders will receive a daily-calculated base annual yield, enjoying returns even without participating in contract trading. Eligible USDⓈ-M futures traders can additionally earn an enhanced annual yield on the same day. Historical data shows that from November 20 to 25, the base APY for BFUSD fluctuated between 12% and 35%, while the enhanced yield reached 15% to 47%.
BFUSD is not a stablecoin and cannot be withdrawn from Binance futures accounts or traded in public markets. It can only be used as margin for Binance futures trading and is exchangeable with USDT at a 1:1 ratio. The product generates returns through delta hedging strategies between spot and futures markets, as well as Ethereum staking. Currently, it is only available to qualified Binance futures users in supported regions, excluding restricted jurisdictions such as the United States.
