Binance to Cease BUSD Services by October 25

The End of an Era for BUSD

Binance has officially announced that it will be terminating its borrowing and lending services for its native stablecoin, Binance USD (BUSD) by October 25. This decision marks a significant shift in the service offerings of one of the leading crypto exchanges.

What Users Need to Know

In a recent notification, Binance affirmed that all outstanding BUSD loan and collateral positions will be closed by month’s end. Users can breathe a slight sigh of relief, as they will still have access to borrowing and lending services via other stablecoins like Tether (USDT), Dai, TrueUSD (TUSD), and USD Coin (USDC). Currently, users are enjoying an estimated annual percentage yield of 3% on their BUSD loans, but it seems that’s about to change.

A Brief Glory: BUSD’s Rise and Fall

Once a reigning champion among stablecoins, BUSD had reached a staggering market capitalization of $23 billion in November 2022. However, it has sharply plummeted to a mere $2.23 billion at the time of this announcement. The decline has been an interesting rollercoaster ride in the ever-evolving world of cryptocurrency.

Phased Termination: What Happened?

The process of winding down BUSD services has been gradual. Recently, Binance suspended BUSD withdrawals across multiple blockchains, including BNB Chain and Tron, while keeping its Ethereum network operational for withdrawals. Interestingly, BUSD deposits remain permissible on all platforms, leading the exchange to encourage users to convert their remaining balances into fiat or other cryptocurrencies before the full termination next year.

Upcoming Changes and Final Closure

It’s important to keep in mind that this cessation aligns with previous announcements from Paxos, the issuer of BUSD, who is also pulling back due to ongoing litigation with the U.S. Securities and Exchange Commission. The timeline appears to paint a picture of a systematic phase-out of the BUSD stablecoin, which users should prepare for in the months ahead. So, if you’re holding on to BUSD, it’s time to explore your options!