Binance to Discontinue Lending Services for BUSD Stablecoin

Binance to Discontinue Lending Services for BUSD Stablecoin

Time Stamp: October 4, 2023 9:44 AM
Source Node: 2917752

Binance takes another step toward saying goodbye to BUSD.

Binance, one of the leading cryptocurrency exchanges, has announced it will terminate its lending and borrowing features for Binance USD (BUSD) by October 25th. 

According to the announcement shared on October 3rd, Binance highlighted that, in particular, it will wind down all existing BUSD loan and collateral positions.

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Following this move, Binance users will not be entirely excluded from stablecoin lending and borrowing services. Other stablecoins like Tether (USDT), Dai (DAI), TrueUSD (TUSD), and USD Coin (USDC) will continue to be supported for these activities. 

This decision comes in the wake of a long-term plan to phase out BUSD services. Some reports claim that Binance intends to shut down all operations related to BUSD by 2024.

Notably, earlier this year, on February 13th, Paxos, which issues the BUSD stablecoin, announced it would discontinue its association with Binance, citing Binance's unresolved legal issues with the US Securities and Exchange Commission (SEC).

Paxos plans to stop BUSD redemptions for US cash and Treasuries by February 2024, while mining new BUSD stablecoins has been paused for quite some time.

Meanwhile, BUSD deposits are still permitted across all blockchain networks, and Binance is encouraging users to convert their BUSD holdings into fiat currency or other cryptocurrencies by next year.

The decision to halt lending and borrowing services for BUSD on Binance marks yet another step in the gradual winding down of the stablecoin's features and services. Although this may limit some options for Binance users, it is part of a broader strategy that could be tied to regulatory pressures and business considerations.

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
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