Binance Announces High-Yield BFUSD

Binance, the largest cryptocurrency exchange in the world by market share, has unveiled its new “supercharged,” BFUSD.

The asset's annual percentage yield (APY) will vary, and there are multiple yield rates based on user activity. From Nov 20 to 26, the basic annualized yield of BFUS ranged between 12% and 35%, and the average annualized yield was 19.7%

Users who actively trade futures contracts will be eligible to receive a boosted rate, with an average annualized rate of return of 24.6%.

BFUSD is a new margin asset for Binance Futures users. BFUSD holders can use the token as margin, or as a yield bearing asset. BFUSD can be exchanged for USDT at any time, but is not a stablecoin and can not be withdrawn from Binance Futures accounts.

Binance has recently come under fire for erratic listings of small-cap memecoins, including NEIRO and ACT, which were both under a $30 million market capitalization at the time of listing.

These controversial listings and the BFUSD launch come less than two months after the prison release of Binance founder Changpeng Zhao (CZ). CZ was sentenced to four months behind bars after pleading guilty to violating the Bank Secrecy Act (BSA), a set of U.S. laws and regulations intended to prevent money laundering.

UPDATE: This story was corrected 12/04 to reflect BFUSD is not a stablecoin.