Binance, the world’s largest crypto exchange, has announced its intention to phase out support for Binance USD (BUSD) across its various services.
According to Binance’s blog post, this decision comes after Paxos stopped minting new BUSD tokens. Nevertheless, Binance assures its users that BUSD will continue to be backed 1:1 by the US dollar. The exchange urges users to convert their BUSD holdings to other stablecoins available on the platform before February 2024. Alternatively, users can exchange their BUSD for FDUSD with no trading fees or exchange them at a 1:1 ratio.
Starting September 7, 2023, Binance will suspend the ability to borrow BUSD in its cross-margin trading feature. Additionally, as of October 19, 2023, users will not be able to transfer any more BUSD to their cross-margin wallets as new collateral. Binance will also stop withdrawing Binance Peg BUSD tokens via networks like BNB Chain, Avalanche, Polygon, Tron, and Optimism starting September 7, 2023. However, deposits and withdrawals of BUSD in its ERC-20 form via the Ethereum network will continue until further notice. Deposits of Binance-Peg BUSD tokens via the BNB Chain, Avalanche, Polygon, Tron and Optimism networks are also supported until further notice.
Binance will also gradually delist BUSD margin perpetual contracts, with separate announcements required for each delisting. Users can manually convert their BUSD balances in the futures wallet to other supported futures margin assets in the futures wallet via the Futures Asset Conversion feature. As far as investment products go, Binance’s Simple Earn Flexible Products will no longer offer BUSD subscriptions as of October 13, 2023. The Auto-Invest feature will retire BUSD plans effective September 15, 2023 and will automatically upgrade all existing BUSD Auto-Invest plans to FDUSD Auto-Invest plans. Liquid Swap will phase out BUSD liquidity pools while Dual Investment will continue to support BUSD until December 31, 2023.
DeFi flexible plugging will close all existing BUSD positions on September 14, 2023. Additionally, as of September 6, 2023, BUSD will no longer be listed as a loanable asset and as collateral for Binance Loans and VIP Loan. Binance gift cards will no longer support BUSD as of September. The currency will also be disabled as an order currency in the Binance Pay Merchant Service as of 03/30/2023. All existing BUSD orders placed prior to September 30, 2023 can continue to be refunded to customers in BUSD until further notice. In addition, all BUSD gift cards created prior to September 30, 2023 can still be redeemed until further notice.
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