Binance to End Support for BUSD Stablecoin, Remaining Balances Converted to FDUSD
Major cryptocurrency exchange Binance announced today in a blog post that it will end support for its Binance USD (BUSD) stablecoin on December 15. The move comes after regulators ordered BUSD issuer Paxos to halt minting of the stablecoin earlier this year.
To aid the transition away from BUSD, Binance will automatically convert any remaining BUSD balances to First Digital USD (FDUSD) stablecoin after December 31. Users are encouraged to withdraw or convert their BUSD holdings prior to the December 15 deadline.
Launched in 2019, BUSD is a stablecoin pegged to the US dollar. It is issued by Paxos Trust Company and was endorsed by Binance to become a popular stablecoin option on its exchange.
In February 2023 the New York Department of Financial Services (NYDFS) ordered Paxos to stop minting new BUSD, however, citing concerns over its reserves. The regulatory crackdown led Binance to announce it would “gradually” end support for BUSD back in August.
⚠️ BUSD delisting from Binance
if you hold BUSD, get out to be safe
we don’t need another stablecoin depegging pic.twitter.com/VfgFlHvddp
— borovik.eth (@3orovik) November 29, 2023
While existing BUSD will be redeemable through February 2024, Binance has set December deadlines to halt trading and withdraw BUSD from its platform.
The discontinuation includes removing BUSD trading pairs and halting deposits on various networks. Binance will also disable BUSD withdrawals starting December 31 at 3:00 AM UTC. At that time, any remaining BUSD balances will be automatically converted to FDUSD.
FDUSD was launched by FD121 Limited, a subsidiary of Hong Kong-headquartered financial firm First Digital Limited earlier this year.
Binance is attempting to make the transition seamless by enabling 1:1
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