Binance is winding down support for its Binance USD (BUSD) stablecoin in coordination with issuer Paxos and steering users toward a new preferred stablecoin, First Digital USD (FDUSD). Binance announced it will gradually end BUSD product support, stop listing new BUSD trading pairs, and fully cease BUSD trading by February 2024, aligning with Paxos’ plan to halt BUSD redemptions at that time. The exchange has advised users to convert BUSD into other assets, particularly FDUSD, offering 1:1 conversion and zero-fee trading or conversion for BUSD–FDUSD pairs during the transition. The move follows regulatory pressure on Paxos and BUSD in the United States. In February 2023, the New York Department of Financial Services ordered Paxos to stop issuing new BUSD after the U.S. Securities and Exchange Commission indicated BUSD could be an unregistered security. BUSD’s market capitalization subsequently collapsed from tens of billions of dollars to a fraction of that, prompting Binance to reduce its reliance on the token and formally sunset support. By positioning FDUSD—issued by Hong Kong-based First Digital Group—as its main dollar-pegged stablecoin and automatically converting remaining BUSD balances to FDUSD after support ends, Binance is reshaping its stablecoin strategy under heightened regulatory scrutiny.

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