Binance Locks $250 Million in Plasma On-Chain USDT Yield Push

Binance has teamed up with the Plasma Foundation to launch what the companies call the first fully on-chain USDT yield product, bringing daily stablecoin interest and future token incentives to the exchange’s 280 million users. Participants who lock Tether on Binance Earn will accrue an estimated 2% annualised return in USDT and share 1% of Plasma’s forthcoming XPL token supply once the network’s token generation event occurs.

The product opened on 20 August with a 250 million-USDT cap and a per-account ceiling of 100,000 USDT. Binance said the entire allocation was subscribed in less than an hour and that it may increase the limit in subsequent tranches. Deposits are subject to a 60-day lock-up but can be redeemed at any time after that period.

Plasma plans to launch its mainnet in September, positioning itself as a Bitcoin sidechain optimised for stablecoin transactions. By routing Binance’s USDT yield programme through Plasma, the network hopes to seed liquidity and broaden its reach ahead of launch.

The initiative underscores intensifying competition among digital-asset platforms to attract stablecoin balances after the U.S. GENIUS Act barred issuers from offering yield directly but left room for third-party services. Binance holds more than US$30 billion of USDT, giving the partnership a potentially large pool of assets to migrate on-chain.

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