Binance, the world’s largest cryptocurrency exchange, has clarified that its forthcoming BFUSD asset is not a stablecoin despite its promise of high yields. The clarification comes after widespread speculation and concerns among crypto users who drew parallels to Terraform Lab’s failed algorithmic stablecoin, TerraClassicUSD (USTC).
Binance confirmed on X (formerly Twitter) that BFUSD is actually a reward-bearing margin trading product designed to offer users additional benefits when trading futures contracts. The company emphasized that BFUSD has not yet launched and will provide more details about its features and mechanics in the future.
Binance’s clarification aims to dispel any misconceptions about BFUSD and prevent unnecessary panic or fear among its users.
The company remains committed to transparency and providing accurate information to its community.
