The world’s largest cryptocurrency exchange by global trade volume, Binance, has announced it is discontinuing support for the stablecoin asset BUSD. The trading platform is encouraging users to swap their BUSD as Binance gradually phases out BUSD markets.
BUSD Support Ending on Binance, Users Told to Swap Tokens
On August 31, Binance disclosed BUSD support will be phased out and the exchange is asking users to convert BUSD to other stablecoins before February 2024. The blog post notes the issuer of BUSD, Paxos, has halted minting the stablecoin and Binance is offering no-fee swaps if customers convert BUSD balances into FDUSD.
On Sept. 7, Binance will suspend BUSD loans on cross margins and on Oct. 19, cross-margin and portfolio margin users will no longer be able to transfer additional BUSD as new collateral to the platform’s cross-margin wallet. “Withdrawals of Binance-Peg BUSD tokens via BNB Chain, Avalanche, Polygon, Tron, and Optimism networks will cease [on September 7],” the exchange disclosed.
Other suspension announcements say support will continue “until further announcements.” Several other phase-out BUSD dates are listed for Binance’s loan and earn programs. BUSD has seen its supply gradually decline since Paxos was told by U.S. regulators it could no longer mint BUSD.
The stablecoin’s market valuation is just above the $3 billion range, while there’s 327 million FDUSD in circulation today. Binance’s announcement notes that while BUSD is being discontinued, the exchange assures that “BUSD will always be backed 1:1 by USD.”
Meanwhile, Binance commands a majority of the TUSD supply according to Nansen analytics which shows the exchange’s TUSD stash represents more than 5% of its reserves. Binance further controls more than $17 billion worth of tether (USDT).
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