In a significant development in the cryptocurrency market, Binance has announced that it will discontinue support for its BUSD stablecoin, which currently has a market capitalization of $16 billion. This decision comes on the heels of a leadership change, with CZ stepping down as CEO of Binance.
The exchange has set a timeline for the phase-out of BUSD, stating that support will end on December 15, 2023. Binance users are being offered the option to convert their BUSD holdings to FD121 Ltd.'s FDUSD stablecoin without incurring trading fees. This fee waiver will be in effect until December 31, 2023, when withdrawals for BUSD will cease in most regions, with the exception of Kazakhstan, Poland, Italy, France, and Japan. Following this date, any remaining BUSD holdings will be automatically converted to FDUSD.
The move away from BUSD was preceded by a regulatory action in February 2023, when the New York Department of Financial Services (NYDFS) instructed Paxos to stop issuing BUSD. Paxos had partnered with Binance in 2019 to launch BUSD, which grew to become the third-largest stablecoin in the market.
Despite the unfolding changes within Binance's ecosystem and the recent leadership transition, BUSD remains stable, trading at $1. The stablecoin has even seen slight increases in its value and trading volume. Binance has assured users that BUSD will continue to be redeemable until February 2024, providing ample time for holders to adjust their positions in light of the upcoming changes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.