Cryptocurrency exchange Binance will cease borrowing and lending services for its native stablecoin Binance USD (BUSD) by October 25.
According to October 3 advertisementThe exchange will close all outstanding loans and guarantees for BUSD by the end of the month. Users will still be able to borrow and lend on Binance using stablecoins such as Tether (USDT), Dai, TrueUSD (TUSD), and USD Coin (USDC). Currently, users can lend their BUSD on Binance at estimated The annual return rate is 3%.
On August 31, Cointelegraph reported that Binance would cease all services related to its BUSD stablecoin by 2024. Previously, on February 13, New York fintech firm Paxos, the issuer of the BUSD stablecoin, said it would end its ties with Binance due to the latter’s actions. Ongoing litigation with the US Securities and Exchange Commission. Paxos said it will end redemptions of BUSD into underlying US cash and Treasuries in February 2024, with new BUSD minting halted for the time being.
Before the termination announcement, BUSD was one of the largest stablecoins, reaching a peak market capitalization of $23 billion in November 2022. It has since fallen to $2.23 billion at press time.
BUSD and related services have been terminated in phases. Exchange last month hanging Withdrew BUSD via BNB Chain, Avalanche, Polygon, Tron and Optimism but left it open on the Ethereum network. BUSD deposits, on the other hand, remain open across all blockchain networks, with the exchange urging users to convert their BUSD balances into fiat or other cryptocurrencies by next year.
FYI: Binance will discontinue BUSD in 2024
According to an official announcement on the cryptocurrency exchange Binance app, the exchange pops up a notification to users that they will stop supporting BUSD in 2024.
This aligns with Paxos’ phase-out of buying BUSD by February… pic.twitter.com/XiRPy71b3p
– Nu Brave (@NuBraveIN) August 30, 2023
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