Nikolas Sargeant
Following Paxos's decision to halt the minting of new BUSD, Binance, a leading global cryptocurrency exchange, has announced a strategic transition plan regarding BUSD products.
Binance will cease support for BUSD products on different services on different dates. It is important to note that BUSD will maintain its 1:1 peg to the USD, ensuring users' confidence in the stability of the cryptocurrency. Paxos has confirmed its commitment to supporting BUSD, making it redeemable through at least February 2024.
BUSD stands for Binance USD. It is a stablecoin pegged to the value of the United States Dollar (USD) on a 1:1 ratio. Stablecoins are cryptocurrencies designed to minimize price volatility by pegging their value to a reserve asset, often a fiat currency like the US Dollar.
To facilitate a smooth transition, users are strongly encouraged to withdraw or convert their BUSD assets into other available assets on Binance before the cutoff date of 2023-12-15. As part of this transition, Binance offers users the option to trade their BUSD balances for FDUSD at zero trading fees or convert their BUSD balances to FDUSD on Binance Convert at a 1:1 conversion rate with zero fees.
Commencing from 2023-12-31 at 03:00 (UTC), BUSD withdrawals will be disabled, and any remaining BUSD balances in users' Binance accounts (excluding users in Japan, France, Italy, Poland, and Kazakhstan) will be automatically converted to FDUSD at a 1:1 conversion rate. Users will still have the option to deposit BUSD into Binance and manually convert their BUSD to FDUSD at a 1:1 conversion rate until further notice.
Furthermore, the collateral assets of Binance-Peg BUSD will also undergo conversion to FDUSD at a 1:1 conversion rate, with the process anticipated to be completed around December 2023. Users will be notified separately once the collateral conversion is fully executed.
Binance remains committed to providing a secure and efficient trading environment for its users. The transition plan ensures minimal disruption while aligning with the evolving landscape of the cryptocurrency market. Binance is known for lending stability to the market, such as in the wake of the crash of FTX.
Binance is a global cryptocurrency exchange platform providing a wide range of digital asset services to users worldwide. You can read more about the staking services they provide and the vast amount of trading pairs in our Binance review. With a commitment to security, innovation, and user experience, Binance has become a trusted name in the cryptocurrency industry.
For further information and updates, please refer to Binance's official announcement.
