Binance, one of the leading cryptocurrency exchanges, has announced its decision to discontinue support for BUSD (Binance USD) in the first quarter of 2024. BUSD is a stablecoin pegged to the US dollar and has gained popularity among traders and investors as a reliable digital asset. Binance’s decision to stop supporting BUSD comes as a surprise to many, as the stablecoin has been widely used on the platform. Traders and users are advised to take necessary actions and make the transition to alternative stablecoins before the discontinuation takes effect. This announcement is expected to have a significant impact on the cryptocurrency market and the trading activities within the Binance platform.
The Future of BUSD: Binance to Halt Support by 2024
In recent news, crypto exchange Binance has announced that it will be ending its support for BUSD, the popular stablecoin, by the year 2024. This decision comes after Paxos, the blockchain infrastructure platform, ceased minting BUSD in response to regulatory restrictions.
Delisting BUSD Trading Pairs
As part of its plan to discontinue BUSD, Binance will be delisting BUSD spot and margin trading pairs. This move includes the removal of nine cross-margin and isolated margin BUSD trading pairs, such as HARD/BUSD, AMB/BUSD, and IOST/BUSD.
Conversion to FDUSD
Binance is encouraging users to convert their BUSD to FDUSD, a stablecoin that was recently listed on the Binance platform. Users can convert their BUSD balances to FDUSD at a ratio of 1:1 or trade their BUSD assets for FDUSD with zero fees. The company aims to fully cease BUSD support by February 2024. Alternatively, customers can also convert their BUSD balances to other stablecoins that are supported on the Binance platform.
BUSD (ERC-20) token withdrawals and deposits on the Ethereum network will continue to be supported until further notice, according to Binance.
Paxos’ Decision to Stop Minting BUSD
The decision by Binance to end BUSD support follows Paxos’ decision to halt minting new BUSD tokens. The New York Department of Financial Services (NYDFS) directed Paxos to cease the minting of new BUSD tokens, which resulted in the company stopping issuance from February 21, 2023.
Introduction of FDUSD
FDUSD, or First Digital USD, is a stablecoin issued by First Digital Trust, a custodian based in Hong Kong. It was listed on the Binance platform in July and came with a promotional offer of zero maker fees for FDUSD trading pairs.
As Binance prepares to phase out BUSD, users are encouraged to make the necessary conversions to FDUSD or other supported stablecoins prior to February 2024.