- November 29, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Binance announced on Nov. 29 that it will end support for its associated Binance USD (BUSD) stablecoin starting in mid-December.
Binance indicated that all spot trading pairs involving BUSD will be delisted between Dec. 11 and Dec. 15. It also said that spot trading orders and Spot Trading Bot services will be closed or terminated on the relevant date. Binance said that futures delistings will take place according to a different schedule.
The company said that users should withdraw their BUSD holdings or convert BUSD into other assets before Dec. 15. It noted that users can convert BUSD to another stablecoin, First Digital USD (FDUSD), at a 1:1 rate with zero fees.
The company said it would end BUSD withdrawals on Dec. 31 and that BUSD balances would be automatically converted to FDUSD. Users in some countries will not have their BUSD converted at that time, Binance said.
Binance added that collateral assets of Binance-Peg BUSD will also be converted to FDUSD at a yet-to-be-determined point around December 2023.
Paxos stopped minting BUSD in February
Binance’s issuing partner, Paxos, announced that it would stop minting BUSD in February amidst action from the New York Department of Financial Services (NYDFS). Binance noted today that Paxos will continue to offer redemption and support for BUSD through at least February 2024 despite halting issuance.
Binance has been gradually discontinuing BUSD in response to the developments involving Paxos. In March, Binance announced it would replace BUSD in its SAFU Fund with other stablecoins while supporting BUSD more broadly.
Later, in August, Binance said it would end BUSD support by February 2024. It did not provide any specific date by which it would end support at the time. Also, in October, Binance announced the end of BUSD borrowing and staking.
BUSD currently has a market capitalization of $1.7 billion. By that measure, it is the fifth largest stablecoin and 39th largest cryptocurrency overall.
The post Binance to fully phase out BUSD by end of December appeared first on CryptoSlate.
