Binance promotes a new stablecoin and reveals its intention to stop supporting BUSD

Due to its intentions to discontinue support for BUSD, cryptocurrency exchange Binance has urged customers to begin transferring their holdings of the Binance USD BUSD stablecoin into other available assets, such as a stablecoin that has just been listed.

Binance confirmed earlier rumors that it will gradually remove support for BUSD by February 2024 in a statement on August 31. This decision is in line with Paxos' plans to stop BUSD redemption at that time.

After multiple customers uploaded photos of a pop-up announcing the upcoming support suspension on their mobile app, Binance finally addressed the issue in an official statement.

The stablecoin First Digital USD (FDUSD), which was introduced in June by the Hong Kong-based trust company First Digital Group and made its debut on Binance in late July, is what Binance stated it is pushing users to exchange or convert their BUSD balances for.

The exchange delisted eight BUSD pairings on August 30 and added BUSD to the list of currencies for which transactions and conversions are free. Users have already been encouraged to utilize the stablecoin by the exchange, which offers zero-fee trading pairs for FDUSD with Bitcoin and Ether.

Binance's move to stop supporting BUSD appears to be in response to the Securities and Exchange Commission of the United States alleging in a notice it sent to Paxos on February 13 that BUSD was an unregistered security.

The same day, Paxos was told to stop issuing BUSD by the New York Department of Financial Services.