Binance Clarifies BFUSD Not a Stablecoin & Not  Launched Yet

As a seasoned researcher with a keen eye for detail and a heart for cryptocurrencies, I find the introduction of BFUSD by Binance to be a fascinating development. With my background spanning multiple market cycles and numerous crypto projects, I can’t help but notice the similarities and differences that this new asset brings to the table.


It’s been buzzing in the crypto world as Binance recently unveiled a new asset, called BFUSD. At first glance, it was thought to be a high-yield stablecoin due to its name and an impressive 19.55% annual percentage yield (APY). However, Binance made clear that BFUSD is not actually a stablecoin and has not been launched yet.

Binance clarified on X that BFUSD stands as an interest-yielding instrument tied to future trades. Binance aimed to dispel misunderstandings. However, the promotional material for this asset continues to highlight its returns in relation to stablecoins, stirring more excitement.

The impressive 19.55% Annual Percentage Yield (APY) is garnering interest, being likened to the former TerraLUNA stablecoin and its Anchor Protocol, which previously provided comparable returns. However, the means by which BFUSD produces such high returns remains a mystery for now, but Binance assures further clarification will be forthcoming.

Users may securely store their BFUSD in their “User Metaverse (UM) Portfolio” to earn regular rewards automatically credited to their “UM Futures Account.” Unlike conventional staking methods, there’s no requirement for lockup periods, and the limits are determined by the user’s Binance VIP status.

This news arrives during a time when the digital currency sector is investigating replacements for conventional stablecoins. Notable examples include BlackRock’s BUIDL and Ethena’s USDe, which propose innovative approaches to dollar-linked resources.

Previously, Binance had discontinued support for their own stablecoin, Binance USD (BUSD), due to regulatory pressure and recommended users to transition to First Digital USD (FDUSD). However, with BFUSD, it appears Binance is adopting a new strategy, which is already causing quite a stir.

It’s yet uncertain whether BFUSD will become popular, but the fact that it offers a substantial return and has an unusual design has certainly stirred up many discussions.

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2024-11-19 09:08