Binance exchange has decided to wind down support for its widely recognized stablecoin, BUSD, next year, in collaboration with Paxos.
Paxos to cease support for BUSD
BUSD, a digital currency pegged to the value of the US dollar, enjoyed significant popularity on Binance’s platform. Yet, after the SEC accused Paxos of emitting BUSD, which it termed an unregistered security, the stablecoin emission was halted and its use is being wound down.
Paxos, a trusted name in the digital currency sector, has let it be known that it will continue to support the BUSD token, backed 1:1 to the US dollar until it ceases supporting it by February 2024.
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
Out of BUSD and into FDUSD?
Binance made the announcement in a statement on its website support section. It referred to the fact that Paxos had stopped minting BUSD and affirmed that users should convert their assets out of BUSD by February 2024.
Binance also encouraged investors to move out of the BUSD stablecoin and into First Digital USD (FDUSD), stating that users would not have to pay fees on this particular trade.
Probably seeking compliance with the SEC Wells Notice to Paxos that BUSD is an unregistered security, Binance has signalled that it will gradually delist all the remaining BUSD pairs on its platform.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.