Binance Announces Termination of "BUSD" Support | Recommends Switching to Other Stablecoins

In a significant move, Binance has declared the phased cessation of its stablecoin, BUSD, by February 2024.

Learn why this decision was made, what it means for users, and the services impacted by this change.

Binance Urges Conversion to Alternative Cryptos by February 2024

On August 31, 2023, Binance, a renowned cryptocurrency exchange, declared a phased cessation of its branded stablecoin, "BUSD".

This decision stems from the halt in the issuance of new BUSD by Paxos, the company behind its origination. It was accentuated, however, that Binance will continue to support various other stablecoins and digital assets in its portfolio.

Worth noting is that BUSD is always backed at a 1:1 ratio with the US dollar, so concerns about a significant price drop are unfounded.

Users holding BUSD on Binance are strongly encouraged to convert their holdings to another cryptocurrency by February 2024.

Specifically, users can switch to the newly supported stablecoin "FDUSD" in July this year at zero transaction fees.

FDUSD is a US dollar-pegged stablecoin, issued by the Hong Kong-based trust company, First Digital. It is available on the Ethereum and BNB chains.

Services Impacted by BUSD's Discontinuation

Several services are likely to be influenced by the discontinuation of BUSD, as mentioned below.

Detailed schedules and more information can be found on Binance's official announcement page.

• Spot trading
• Margin trading
• Deposits and withdrawals
• Convert
• Futures trading
• Earn
• Loans
• Gift cards
• Payments

Click here for Binance's official announcement.