Binance, a major global crypto exchange, is moving towards phasing out its BUSD stablecoin, with recent conversions of BUSD to FDUSD for eligible users. This marks a significant shift in the exchange’s stablecoin strategy.
The conversion process of BUSD token balances to FDUSD has been completed, and users can now verify the reception of FDUSD tokens through their Distribution or Conversion History pages. All eligible BUSD balances in users’ Spot and Funding Wallets were converted to FDUSD at a 1:1 rate.
Despite these alterations, BUSD deposits have restarted, offering users continued flexibility. These deposits will be automatically converted to FDUSD at a 1:1 ratio on weekdays, with occasional pauses without prior notification. Furthermore, users have the option to manually swap BUSD for FDUSD using Binance Convert.
However, it’s important to note that BUSD withdrawals are no longer supported.
Data indicates FDUSD has gained a market share of 1.39%, while BUSD still maintains a market share of 0.75%. Meanwhile, Tether’s USDT remains dominant, holding over 70% of the market share.
Binance’s decision to phase out BUSD traces back to an August 2023 announcement following the New York Department of Financial Services’ (NYDFS) directive to Paxos, BUSD’s issuer, to stop minting the coin in February 2023. Binance also faced legal action from the Commodity Futures Trading Commission (CFTC) for allegedly offering unregistered crypto derivatives in the US.
Under new CEO Richard Teng’s leadership, succeeding founder Changpeng Zhao, Binance emphasizes regulatory compliance, especially within the US market. The exchange has set deadlines for discontinuing BUSD support, ending it on December 15, 2023, allowing users to redeem their BUSD until February 2024.
