- Binance users need to convert their BUSD to other available crypto assets.
- Users can manually convert their BUSD to FDUSD in a 1:1 ratio.
Binance, the world’s largest crypto exchange, has released an announcement stating that users should convert their Binance USD (BUSD) into other cryptocurrencies, including the newly listed stablecoins, before February 2024. This announcement comes after Paxos halted the minting of the new BUSD.
As Paxos has halted minting of new BUSD, #Binance will now gradually remove support for the stablecoin on our platform.
— Binance (@binance) August 31, 2023
BUSD will always remain backed 1:1 by USD, and we continue to support a wide range of other stablecoins.
Find more details below.
On August 31, the crypto exchange shared that it would remove support for the stablecoin BUSD. Users need to convert their BUSD to other available crypto assets. However, the crypto exchange will continue to support multiple stablecoins and digital assets on its platform.
Paxos Halted Minting Binance USD
On February 13, 2023, the stablecoin issuer Paxos announced that it would stop minting new BUSD tokens. This news comes after the legal action thread from the U.S. Securities and Exchange Commission for selling BUSD as an unregistered security. Following that, Paxos ended its relationship with Binance for BUSD.
According to the Binance statement, BUSD will always be backed by 1:1 USD. Moreover, users have to convert their BUSD before February 2024. The crypto exchange is delisting the BUSD as a loanable asset on September 6 and will cease the withdrawals of Binance-pegged BUSD tokens via the BNB chain, Avalanche, Polygon, and Tron on September 7. The deposits can be supported until further notice.
In this statement, the crypto exchange also mentioned that the crypto exchange encourages users to convert their BUSD balance for First Digital USD (FDUSD), which had its first listing on the crypto exchange. Moreover, users can manually convert their BUSD to FDUSD in a 1:1 ratio using Binance Convert until further notice. It was also mentioned that the 1:1 conversion rate is only applicable for BUSD to FDUSD.
