The era of Binance USD (BUSD) has ended today in the world of cryptocurrency. The world’s largest cryptocurrency exchange has terminated its support for BUSD, a stablecoin by Paxos, following the halt in its minting.
Binance rolled up its sleeves after the US-based cryptocurrency company Paxos decided to stop minting new BUSD. The cryptocurrency exchange had removed dozens of BUSD trading pairs from all its branches, including spot, futures, and margin until now. Indeed, as of today, the cryptocurrency exchange has completely ended all support for BUSD.
Users had been able to withdraw their BUSDs from Binance or convert them into other cryptocurrencies listed on Binance until now. To facilitate this for users holding BUSD, the cryptocurrency exchange had offered several opportunities such as converting their BUSDs to another stablecoin, First Digital USD (FDUSD), with zero transaction fees or converting their BUSD balances to FDUSD at a 1:1 conversion rate with zero transaction fees via Binance Convert.
On the other hand, Binance will also convert the collateral assets of Binance-Peg BUSD to FDUSD at a 1:1 conversion rate expected to occur this month. After the completion of the collateral conversion, the cryptocurrency exchange will make a separate announcement to inform its users.
The process began with the U.S. Securities and Exchange Commission (SEC) sending a Wells Notice to Paxos in February of this year, indicating that BUSD was an unregistered security. Following the order from the New York Department of Financial Services to Paxos to stop issuing BUSD, the cryptocurrency company ceased its issuance of BUSD.
BUSD was among the largest stablecoins by market value before August. The stablecoin saw its peak market value in November 2022, at $23.3 billion. Its current market value is now $1.25 billion, which means a drop of 95% over the last year.
