Cryptocurrency exchange giant Binance recently announced detailed plans to fully retire its stablecoin, Binance USD (BUSD), and facilitate a transition to First Digital USD (FDUSD) ahead of a full shutdown scheduled for mid-December this year.
The move comes after the disruption in the creation of new BUSD units by Paxos, its issuing partner, which led Binance to cease support for BUSD-related products as of December 15, 2023.
However, Paxos guarantees that BUSD will always maintain a 1:1 peg with the US dollar and remain redeemable until at least February 2024.
BINANCE USERS HAVE BEEN URGED TO TAKE PREVENTIVE MEASURES BEFORE THE OFFICIAL CLOSURE
Binance has advised its BUSD holder users on its official website to withdraw their assets or convert them to other cryptocurrencies available on the platform before December 15, 2023.
Additionally, the opportunity is offered to convert your balances from BUSD to FDUSD without additional fees, through Binance Convert, at a 1:1 conversion rate.
The transition process includes a series of structural changes to multiple services and products offered by the exchange.
Specific dates have been detailed for the elimination of spot trading pairs involving BUSD, closure of Futures and Margin services with BUSD, as well as modifications to deposits, withdrawals and conversions.
While most BUSD balances will be automatically converted to FDUSD at a 1:1 rate after December 31, 2023, users in certain countries (Japan, France, Italy, Poland and Kazakhstan) will not be included in this automatic conversion.
However, everyone is urged to make the necessary conversions before December 15, 2023.
This progressive transition also encompasses the removal of BUSD as a collateral and lendable asset, as well as its exclusion from various Binance programs and services, from investment products to card and payment functions.
Binance has emphasized its commitment to transparency and long-term sustainable growth in the cryptocurrency ecosystem as it carries out this transition, seeking to minimize disruption for its users and ensure a smooth migration to FDUSD ahead of date. established limit.