Leading cryptocurrency exchange Binance has launched a “reward-bearing margin asset” BFUSD, allowing users to earn passive rewards by holding or trading futures with it.

Tron founder Justin Sun has become the largest investor in Donald Trump's cryptocurrency project World Liberty Financial after buying $30 million worth of its WLFI tokens.

Nasdaq-listed business intelligence firm MicroStrategy has invested an additional $5.4 billion into Bitcoin to acquire 55,500 BTC at an average price of $97,862 per coin, moving the company’s average price paid per BTC to $56,761.

Top stories in the Crypto Roundup today:

• Binance Unveils ‘Reward-Bearing Margin Asset’ BFUSD
• Justin Sun Becomes Largest Investor in Donald Trump’s World Liberty Financial
• MicroStrategy Makes Record $5.4 Billion Bitcoin Purchase

Binance Unveils ‘Reward-Bearing Margin Asset’ BFUSD

Leading cryptocurrency exchange Binance has launched a “reward-bearing margin asset” BFUSD, allowing users to earn passive rewards by holding or trading futures with it.

Per the exchange, BFUSD is “not a stablecoin” as it can “only be used as margin for futures trading on Binance, and redeemed with Binance for USDT stablecoin.” The asset cannot be withdrawn from the exchange, and generates returns through a combination of delta hedging and staking Ether.

Delta hedging involves balancing long and short positions to mitigate the price risk of a spot position with an opposing futures position, while staking involves locking up Ether to earn rewards for securing the network.

Binance assures users that the annual percentage yield (APY) for BFUSD will “never go below zero,” even when the APY of BFUSD is negative during bear market conditions that lead to negative funding fee income.

A reserve fund, initially seeded with 1 million USDT, will help maintain positive returns. The exchange will allocate a portion of the total generated APY to the BFUSD Reserve Fund, so that when funding rates turn negative users “will not pay for the negative funding which is covered by the Reserve Fund.”

The APY for BFUSD will be calculated and distributed daily in USDT, and is expected to fluctuate. The token, which has purchase and redemption fees set at 0.1%, will offer a boosted APY for qualifying users.

Justin Sun Becomes Largest Investor in Donald Trump’s World Liberty Financial

Tron founder Justin Sun has become the largest investor in Donald Trump's cryptocurrency project World Liberty Financial after buying $30 million worth of its WLFI tokens.

Prior to Sun’s public announcement, blockchain activity revealed that a wallet associated with HTX—a crypto exchange formerly called Huobi and controlled by Sun—had acquired 2 billion World Liberty Financial (WLFI) tokens at $0.015 each.

World Liberty Financial, which launched in mid-October, has faced tepid demand for its tokens. Restrictions limiting sales to non-U.S. persons and U.S.-accredited investors, coupled with non-transferability rules preventing token resale, hindered sales.

By the time of Sun’s purchase, only $20 million worth of WLFI tokens had been sold, a fraction of the project’s $300 million fundraising target.

MicroStrategy Makes Record $5.4 Billion Bitcoin Purchase

Nasdaq-listed business intelligence firm MicroStrategy has invested an additional $5.4 billion into Bitcoin to acquire 55,500 BTC at an average price of $97,862 per coin, moving the company’s average price paid per BTC to $56,761.

As a result of the purchase – MicroStrategy’s largest to date – the company now has 386,700 BTC on its balance sheet that was acquired for around $21.9 billion and is currently worth more than $36 billion.

The firm has achieved a BTC Yield, its metric reflecting the increase in Bitcoin holdings relative to the number of shares rather than yield generated on its BTC,  of 35.2% quarter-to-date, and 59.3% year-to-date.

The recent BTC investment came after the firm raised $3 billion through a convertible senior note offering.

State of the Crypto by Top Tier Exchange Volume

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