#Binance

Binance launches $BFUSD, the new digital asset.

Although the annual interest of 14% is quite attractive, Binance has clarified that $BFUSD is not a stablecoin and cannot be withdrawn from the exchange.

$BFUSD is the new currency of Binance, one of the largest cryptocurrency exchanges in the world. The exchange already allows the purchase and redemption of the token. Along with its launch, an annual yield of 14% was announced as a baseline, although this value could change in the future.

Despite $BFUSD maintaining a parity with the US dollar, Binance has specified that it is not considered a stablecoin. This is because the token cannot be withdrawn from the exchange and is limited to the platform.

Binance differentiates $BFUSD from stablecoins or “crypto dollars”

Binance has explained that $BFUSD is designed as a margin asset for futures trading, offering passive rewards. The yields come from delta hedging and staking of ether (ETH), the cryptocurrency of the Ethereum ecosystem.