Binance clarifies: BFUSD is not a stablecoin and has not yet been officially launched

PANews reported on November 19 that, according to , Binance released BFUSD on Monday, calling it a "yield-bearing margin asset for futures trading" that offers a 19.55% annual percentage yield (APY) and can be used as collateral. Binance clarified that although the website footer mentions BFUSD's yield being higher than many stablecoins, BFUSD is not a stablecoin and has not yet been officially launched. The asset allows users to use it as collateral without pledging or locking up funds, and to earn yield through daily airdrops, with user holdings limited based on VIP tiers. Binance plans to further explain how BFUSD's APY is determined. The launch of BFUSD has drawn comparisons to TerraLUNA, although Binance has discontinued support for its stablecoin BUSD due to regulatory pressure as of February 2024, and has suggested users switch to .