Earlier, Paxos, the issuer of the Binance USD (BUSD) stablecoin, reported that the asset will be supported until at least February 2024.
Crypto exchange Binance is finally winding down all operations with BUSD on its platform. This was announced by the company’s representatives in a blog post. Users are advised to withdraw BUSD or convert it to other assets available on the exchange until December 15, 2023, when Binance will stop supporting BUSD products.
The final step will be to disable BUSD withdrawals and automatically convert all assets remaining in users’ accounts to the First Digital USD (FDUSD) stablecoin. This will happen on December 31, 2023. The automatic conversion won’t affect users from Japan, France, Italy, Poland, and Kazakhstan. After that, users will be able to continue depositing BUSD on Binance and manually convert them to FDUSD at a 1:1 rate with zero fees. This feature will be available until further notice.
Paxos previously stated that BUSD would be backed and redeemable at a 1:1 ratio with the U.S. dollar until at least February 2024. As of November 30, 2023, the total capitalization of BUSD in circulation is $1.69 billion, CoinMarketCap reports.
Paxos Trust Company was forced to stop issuing new BUSD tokens on February 21, 2023. This happened after the U.S. Securities and Exchange Commission (SEC) expressed suspicions about the company. Paxos representatives denied all accusations and planned to defend their stance in court, but the Binance USD stablecoin program was completely shut down as a result. Probably, the current situation is largely due to the increased regulatory pressure on Binance.
