Binance is launching a new “reward-bearing margin asset” LDUSDt, which the company says is not a stablecoin.

According to an April 9 announcement, LDUSDt can be obtained by swapping Tether’s USDt deposited in the firm’s Simple Earn yield product. Binance stated that holders of LDUSDt will continue to earn yield rewards through Simple Earn, even while using the token for margin trading.

This marks the second time Binance has launched a reward-bearing margin asset. Binance launched its first reward-bearing margin asset, BFUSD, in 2024. At the time of the launch, Binance had stepped in to clarify that “it is not a stablecoin” in response to user concerns and comparisons to the failed TerraUSD (UST) token.

In its latest announcement, Binance preemptively reiterated that LDUSDt is not a stablecoin:

“LDUSDT is not a stablecoin but a crypto asset that can be used as Futures trading margin, while allowing users to earn Simple Earn Real-Time APR rewards.“

Related: Binance to purge 14 tokens following ‘vote to delist’ process

A deeply integrated token

According to Binance, LDUSDt can be used as a margin asset in multi-asset mode on the exchange’s futures platform. It also accrues real-time annual percentage yield rewards.

The exact launch time is yet to be determined, with the announcement noting that it “will be available on the Binance website and app soon.” A Binance spokesperson told Cointelegraph:

“[LDUSDt] gives users’ USDT more utility by converting it into a tradable asset for Futures, without losing access to their ongoing rewards. When users swap their subscribed USDT for LDUSDT, the funds are automatically moved into their Futures Wallet, where they can be used as margin in Multi-Asset Mode.“

Binance had not responded to Cointelegraph’s questions regarding potential risk implications associated with this system by the time of publication.

Related: Nigerian court postpones Binance tax evasion case to end of April: Report

Binance continues to dominate crypto markets

Binance remains the world’s largest cryptocurrency exchange by trading volume. According to CoinGecko, the platform processed more than $16.5 billion in trades over a 24-hour period. Bitget followed with just under $5 billion in volume.

Data provided by the more popular but Binance-owned CoinMarketCap shows that $24.6 billion worth of trades took place on the exchange over the last 24 hours. The platform shows only $3.84 billion worth of trades on Bitget in the previous 24 hours.

Despite ongoing legal and regulatory challenges in multiple jurisdictions, Binance continues to grow its global influence. According to recent reports, the firm’s former CEO, Changpeng “CZ” Zhao, will begin advising the Kyrgyz Republic on blockchain and crypto-related regulation and tech after signing a memorandum of understanding with the country’s foreign investment agency.

Meanwhile, current CEO Richard Teng remains in the spotlight. In late March, Teng denied reports that Binance.US was in deal talks with entities affiliated with US President Donald Trump during a March 18 panel at Blockworks’ 2025 Digital Asset Summit in New York.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Bitcoin (BTC) price made a swift move to $78,300 at the April 9 Wall Street open as “herd-like” price action in equities markets continued to spook risk-asset traders.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin gyrates as stocks make history

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retargeting five-month lows under $75,000 before rebounding leading into the NY trading session.

A deepening US-China trade war kept stocks on their toes, having cost Bitcoin the $80,000 mark the day prior.

Highly unusual market behavior had accompanied US tariff announcements, and China’s response with reciprocal tariffs saw the S&P 500 smash records with its roundtrip from lows to highs and back.

“On a point basis, the S&P 500 just posted its largest intraday reversal in history, even larger than 2020, 2008 and 2001,” trading resource The Kobeissi Letter confirmed in ongoing market coverage on X. 

“You have just witnessed history.”

S&P 500 chart. Source: The Kobeissi Letter/X

Kobeissi drew attention to volatility kicking in from the smallest of triggers, with markets particularly sensitive to statements from US President Donald Trump.

“The problem with markets right now: Both bulls AND bears feel ‘uncomfortable’ in these market conditions,” it explained on the day.

“Why? Because stocks can swing $5+ trillion in market cap on the basis of a single post from a single person: President Trump. This is why we are seeing ‘herd-like’ price action, where large daily gains turn into large daily losses, and vice-versa.”

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

Crypto was no exception to the tug-of-war, with the Crypto Fear & Greed Index dropping to its lowest levels since early March.

For Keith Alan, co-founder of trading resource Material Indicators, the status quo was unlikely to improve in the short term.

“Part of me wants to sit on my hands and wait for this shit storm to pass,” he told X followers while examining order book conditions for Ether (ETH) and Solana (SOL).

“Because I don’t think it is going to pass quickly, I’m not too eager to buy, even though some of these assets are on sale at great prices. That said, the fact that bids are piling in on some assets makes them very enticing.”

Related: Black Monday 2.0? 5 things to know in Bitcoin this week

CME “gap” creates BTC price resistance above $82,000

Focusing on BTC price action, popular trader and analyst Rekt Capital revealed a new nearby resistance level in the form of a recent “gap” in CME Group’s Bitcoin futures.

“On the CME Futures Bitcoin chart, price broke down from its sideways range (black-black),” he wrote alongside a chart showing the gap between $82,000 and $85,000.

“In confirming the breakdown from the range via a bearish retest, Bitcoin filled the CME Gap (red circle) in the process. That CME Gap is now a resistance.”

CME Bitcoin futures 1-week chart with gap highlighted. Source: Rekt Capital/X

Further analysis gave a new BTC price range with $71,000 as its lower boundary based on previous trading volumes.

“Bitcoin is experiencing downside continuation after upside wicking into the early March Weekly lows (red),” Rekt Capital summarized.

“Having confirmed this red level as new resistance, BTC is now dropping into the $71,000-$83,000 Volume Gap to fill this market inefficiency.”

BTC/USD 1-week chart with volume data. Source: Rekt Capital/X

As Cointelegraph reported, Rekt Capital is among those seeing a potential long-term reversal point at $70,000 or marginally lower.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Opinion by: Sergej Kunz, co-founder of 1inch

Institutional players have been closely watching decentralized finance’s growth. Creating secure and compliant DeFi platforms is the only solution to build trust and attract more institutions.

Clear waters attract big ships

Over the past four years, institutional DeFi adoption has gone from 10% of hedge funds to 47%, and is projected to rise to 65% in 2025. Goldman Sachs is reaching their arms to DeFi for bond issuance and yield farming. 

Early adopters are already positioning themselves in onchain finance, including Visa, which has processed over $1 billion in crypto transactions since 2021 and is now testing cross-border payments. In the next two years, institutional adoption will speed up. A compliant regulatory framework that maintains DeFi’s core benefits is necessary for institutional adoption to engage confidently. 

DeFi’s institutional trilemma

It is no secret that many DeFi security exploits happen every year. The recent Bybit hack reported a $1.4 billion loss. The breach occurred through a transfer process that was vulnerable to attack. Attacks like these raise concerns about multisignature wallets and blind signing. This happens when users approve transactions without full details, rendering blind signing a significant risk. This case calls for stronger security measures and improvements in user experience.

The threats of theft due to vulnerabilities in smart contracts or mistakes by validators make institutional investors hesitate when depositing large amounts of money into institutional staking pools. Institutions are also at risk of noncompliance due to a lack of clear regulatory frameworks, creating hesitation to enter the space. 

The user interface in DeFi is often designed for users with technical expertise. Institutional investors require user-friendly experiences that make DeFi staking possible without relying on third-party intermediaries.

Build it right, and they will come

Institutional interest in bringing traditional assets onchain is enormous, with the tokenized asset market estimated to reach $16 trillion by 2030. To confidently participate in DeFi, institutions need verifiable counterparties that are compliant with regulatory requirements. The entry of traditional institutional players into DeFi has led some privacy advocates to point out that it can counter the essence of decentralization, which forms the bedrock of the ecosystem.

Recent: Securitize to bring BUIDL tokenized fund to DeFi with RedStone price feeds

Institutions must be able to trust DeFi platforms to maintain compliance standards while providing a safe and seamless user interface. A balanced approach is key. DeFi’s permissionless nature can be achieved while maintaining compliance through identity profiles, allowing secure transactions. Similarly, transaction screening tools facilitate real-time monitoring and risk assessment. 

Blockchain analytics tools help institutions to maintain compliance with Anti-Money Laundering regulations and prevent interaction with blacklisted wallets. Integrating these tools can help detect and prevent illicit activity, making DeFi safer for institutional engagement.

Intent-based architecture can improve security

The relationship between intent-based architecture and security is evident; the very design is built to reduce risks, creating a more reliable user experience. This protects the user against MEV exploits, a common issue of automated bots scanning for large profitable trades that can be exploited. Intent-based architecture also helps implement compliance frameworks. For instance, restricting order submissions to clean wallets and allowing resolvers to settle only the acceptable orders.

It’s well understood that in traditional DeFi transactions, users rely often on intermediaries like liquidity providers to execute trades or manage funds. This leads to counterparty risk, unauthorized execution and settlement failure. The intent-based architecture supports a trustless settlement that ensures users commit only when all conditions are met, reducing risk and removing blind trust from the picture.

DeFi platforms must simplify interactions and UX for institutional investors. This system bridges the gap between. Through executing offchain while ensuring security, the intent-based architecture makes DeFi safer and more efficient. However, one of the challenges to this includes integrating offchain order matching while maintaining onchain transparency.

Late adopters of DeFi will struggle to keep up

For the early adopters of DeFi, there is a competitive advantage in liquidity access and yield advantages, whereas late adopters will face more regulatory scrutiny and entry barriers. By 2026, the institutional players that have failed to adopt DeFi may struggle to keep up. This is seen in the examples of early adopters like JPMorgan and Citi’s early tokenization projects. TradFi leaders like them are already gearing up for onchain finance.

The way forward

Regulatory bodies, supervisory agencies and policy leaders must provide clear, standardized guidelines to facilitate broader institutional participation. Uniform protocols underpinning wider institutional involvement are underway. DeFi platforms must be prepared beforehand to provide all the necessary pillars of compliance and security to institutional players who want to embrace mainstream adoption. Executing this shall require combined efforts from regulators, developers and institutions.

Opinion by: Sergej Kunz, co-founder of 1inch.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.