Binance has introduced BFUSD, a yield-bearing stablecoin designed for futures and perpetual traders, according to a Nov. 18 announcement. Offering an annual percentage yield (APY) of 19.55%, BFUSD allows users to earn daily rewards by simply holding the stablecoin in their Binance Futures accounts without needing to stake or lock funds.
Users can acquire BFUSD through Tether (USDT) swaps, and the stablecoin maintains stability via a collateralization ratio of 105.54%, supported by a reserve fund containing 1.1 million USDT as of Nov. 17. Access to BFUSD is restricted in countries under Binance Futures bans, such as Brazil, and in regions where Markets in Crypto-Assets (MiCA) regulations are in effect, where rewards do not accrue.
BFUSD holdings are capped based on user VIP levels, with limits increasing through KYC verification and trading volume milestones. The stablecoin is also compatible with Multi-Asset Mode, serving as collateral with a 100% ratio to enhance trading opportunities across Binance’s ecosystem.
This marks Binance’s first major stablecoin venture since winding down its Binance USD (BUSD) operations following regulatory pressures earlier in 2023. After ceasing support for BUSD, Binance shifted users toward FDUSD, issued by First Digital, and is now positioning BFUSD as a key offering amid heightened competition.
Other stablecoins, like Ethena’s sUSDe with 29% APY, and tokenized money funds such as BlackRock’s BUIDL, add complexity to the competitive landscape. BFUSD’s success will depend on Binance’s ability to navigate the regulatory environment and capture user interest during the ongoing crypto bull cycle.
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