Binance will launch BFUSD, a Margin Asset for Futures Trading.

BlockBeats News, November 19th, in response to the market news "Binance to Launch New Stablecoin BFUSD with an Annual Interest Rate of 19.55%," Binance responded that BFUSD is not a stablecoin but rather a margin asset for futures trading. Binance will soon share more details, including how the APY is determined.

Furthermore, according to the asset's launch page, users can deploy BFUSD as collateral without the need to "stake or lock funds." Instead, users will hold the asset in the "UM Wallet" and receive daily airdrops accumulated based on hourly snapshots sent to their "UM Futures Wallet," the blog stated. Users will receive a "BFUSD Limit" based on their "VIP Level."