According to global transaction volume, Binance, the largest cryptocurrency exchange in the world, has declared that it will no longer support the stablecoin asset BUSD. Users are being urged by the trading platform to exchange their BUSD as Binance eventually discontinues BUSD markets.
BUSD Support Ending on Binance, Users Told to Swap Tokens
Binance announced the phasing out of BUSD support on August 31. The exchange is requesting that users swap their BUSD holdings to other stablecoins by February 2024. According to the blog post, Binance is providing no-fee swaps for users who transfer their BUSD balances into FDUSD and Paxos, the stablecoin's issuer, has stopped minting BUSD.
On September 7, Binance will stop granting BUSD loans on cross margins, and on October 19, users of cross margins and portfolio margins won't be able to upload more BUSD as fresh 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 announced.
Support will continue, according to other suspension statements, "until further announcements." For Binance's loan and earn programs, a number of additional phase-out BUSD dates are provided. Since Paxos was informed by American regulators that it could no longer coin BUSD, the supply of BUSD has gradually decreased.
The market value of the stablecoin is just over $3 billion, and there are currently 327 million FDUSD in circulation. In spite of BUSD's discontinuation, Binance states in its release that "BUSD will always be backed 1:1 by USD."
According to Nansen data, Binance controls the majority of the TUSD supply, and its TUSD holdings account for more than 5% of its reserves. Tether (USDT), which is owned by Binance, is also worth more than $17 billion.
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