Binance Phases Out BUSD Support, Urges Asset Conversion
Binance, one of the world’s leading cryptocurrency exchanges, revealed that it would gradually phase out its support for BUSD (Binance USD) products. The move follows Paxos’ decision to halt the minting of new BUSD, prompting Binance to reevaluate its offerings involving this stablecoin. BUSD, which has been consistently backed 1:1 by USD, has been a widely used digital asset within the Binance ecosystem.
As Paxos has halted minting of new BUSD, #Binance will now gradually remove support for the stablecoin on our platform.
BUSD will always remain backed 1:1 by USD, and we continue to support a wide range of other stablecoins.
Find more details below.
— Binance (@binance) August 31, 2023
Embracing Alternatives to BUSD
Binance made it clear that while it would discontinue its support for BUSD, it would remain committed to facilitating the trading and usage of other stablecoins and digital assets on its platform. This strategic shift aims to ensure a seamless transition for its users, who are encouraged to convert their existing BUSD holdings into alternative assets available on the platform before February 2024.
Various aspects of Binance’s services are set to be affected by this change. The exchange will progressively delist BUSD spot and margin trading pairs, with detailed announcements to follow. BUSD borrowings on Cross Margin will be suspended, and users will no longer be able to add BUSD as new collateral for Cross Margin and Portfolio Margin wallets.
Manual BUSD Conversion
Moreover, withdrawals of Binance-Peg BUSD tokens via specific networks will cease, while deposits and withdrawals of BUSD (ERC-20) tokens on the Ethereum network will continue until further notice. Users are urged to manually convert their BUSD balances to FDUSD (Fiat-backed Digital USD) at a 1:1 ratio using Binance Convert. Binance’s futures and earn offerings will also see adjustments due to the BUSD phase-out. BUSD-margined perpetual contracts will be gradually delisted, and BUSD subscriptions within Earn Flexible Products and Auto-Invest plans will cease at specific dates.
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The closure of BUSD positions and the discontinuation of BUSD as a loanable and collateral asset from Binance Loans and VIP Loan are additional actions planned by Binance. The gradual process of delisting BUSD from various services, such as Liquid Swap and Binance Gift Card, is set to ensure a smooth transition for users.
