Binance, the world’s largest crypto exchange, has declared its intention to gradually cease support for Binance USD (BUSD) across its various services.
According to Binance’s blog post, this decision comes in the wake of Paxos discontinuing the minting of new BUSD tokens. Despite this, Binance assures its users that BUSD will continue to be backed 1:1 by the U.S. dollar. The exchange is urging users to convert their BUSD holdings to other stablecoins available on the platform before February 2024. As an alternative, users can trade their BUSD for FDUSD without any trading fees or convert 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, from October 19, 2023, onwards, users will not be able to transfer more BUSD as new collateral to their Cross Margin Wallets. Binance will also halt withdrawals of Binance-Peg BUSD tokens via networks such as 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 is given. Deposits of Binance-Peg BUSD tokens via BNB Chain, Avalanche, Polygon, Tron, and Optimism networks will also be supported until further notice.
Binance will also gradually delist BUSD-margined perpetual contracts, with specific announcements for each delisting to be made separately. Users can manually convert their BUSD balances in futures wallet to other supported futures margin assets within futures wallet via the Futures Asset Conversion function. In terms of investment products, Binance’s Simple Earn Flexible Products will stop offering BUSD subscriptions from October 13, 2023. The Auto-Invest feature will discontinue BUSD plans starting September 15, 2023, and will automatically update all existing BUSD Auto-Invest plans to FDUSD Auto-Invest plans. Liquid Swap will gradually remove BUSD liquidity pools, while Dual Investment will continue to support BUSD until December 31, 2023.
Flexible DeFi Staking will close all existing BUSD positions on September 14, 2023. Moreover, BUSD will be delisted as a loanable asset and as collateral from Binance Loans and VIP Loan starting September 6, 2023. Binance Gift Cards will cease to support BUSD from September 30, 2023, and the currency will also be deactivated as an order currency within the Binance Pay Merchant Service from the same date. All existing BUSD orders made before September 30, 2023, can still be refunded to the customers in BUSD until further notice. Additionally, all BUSD Gift Cards created before September 30, 2023, can still be redeemed until further notice.