Binance, one of the world’s largest cryptocurrency exchanges, is getting closer to discontinuing its BUSD stablecoin.
This follows a pivotal shift in the exchange’s stablecoin strategy with the recent completion of the conversion of BUSD token balances to FDUSD for eligible users.
Binance converts BUSD to FDUSD
Binance announced that users can now confirm receipt of FDUSD tokens by checking their distribution or conversion history pages.
Specifically, all eligible BUSD balances in users’ spot and funding wallets were converted to FDUSD at a 1:1 ratio. The FDUSD token, which includes ERC20, BEP20, and opBNB smart contract addresses, represents Binance’s latest foray into stablecoin offerings.
Despite these changes, BUSD token deposits have resumed, providing continued flexibility for users. These deposits will be converted to FDUSD at a 1:1 ratio for eligible users on weekdays and may be suspended without prior notice. Users can also manually exchange BUSD to FDUSD using Binance Convert.
However, BUSD token withdrawals are no longer supported.
The screenshot below shows that FDUSD’s market share is only 1.39%, while BUSD’s market share is still 0.75%. Tether’s USDT remains dominant, with over 70% market share.
Read more: What is a stablecoin? Beginner’s Guide
Why Binance is abandoning stablecoins
This move comes after Binance announced plans to phase out BUSD in August 2023 following the New York Department of Financial Services (NYDFS) directing BUSD issuer Paxos to stop issuing coins in February 2023. no see.
at that time. Binance was also sued by the Commodity Futures Trading Commission (CFTC) for allegedly offering unregistered cryptocurrency derivatives in the U.S. and violating federal law. The exchange’s new CEO, Richard Teng, who succeeds Changpeng Zhao, has expressed its commitment to regulatory compliance, especially in the US market.
Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?
In light of these developments, Binance has set a deadline for discontinuing support for BUSD. The exchange ended support for BUSD on December 15, 2023, and users will be able to use BUSD until February 2024.
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