Binance to Cease BUSD Lending Services by October 25
Binance, the popular cryptocurrency exchange, has announced that it will be ending its borrowing and lending services for its native stablecoin, Binance USD (BUSD), by October 25. This move comes as part of Binance’s plan to discontinue all services related to BUSD by 2024. Users will still have the option to borrow and lend using other stablecoins such as Tether (USDT), Dai, TrueUSD (TUSD), and USD Coin (USDC) on the platform.
Currently, Binance users can lend their BUSD and earn an estimated annual percentage yield of 3%. However, all outstanding BUSD loan and collateral positions will be closed by the end of October, as per the announcement made on October 3.
The Phases of BUSD Termination
The termination of BUSD services has been taking place in phases. Last month, Binance suspended BUSD withdrawals via various blockchain networks such as BNB Chain, Avalanche, Polygon, Tron, and Optimism. However, BUSD deposits are still open on all blockchains, and users are encouraged to convert their BUSD balances into fiat or other cryptocurrencies by next year.
It is important to note that this decision to end BUSD services on Binance was influenced by ongoing litigation between Binance and the U.S. Securities and Exchange Commission (SEC). Paxos, the fintech firm responsible for issuing the BUSD stablecoin, had previously announced that it would sever ties with Binance due to the legal dispute.
Impact on BUSD and the Cryptocurrency Market
Before the announcement of the termination, BUSD was one of the largest stablecoins in the market, with a peak market capitalization of $23 billion in November 2022. However, its market capitalization has since fallen to $2.23 billion as of the time of publication. This development reflects the changing landscape of the cryptocurrency market and the impact of regulatory challenges facing stablecoins.
Despite the discontinuation of BUSD services, Binance continues to offer a wide range of cryptocurrency trading and investment options to its users. The exchange remains one of the leading platforms in the industry, known for its liquidity and extensive selection of digital assets.
This news about Binance discontinuing BUSD lending services emphasizes the evolving nature of the cryptocurrency market. As regulatory challenges continue to shape the industry, it is crucial for investors and traders to stay informed about the latest developments. For the latest news and updates on the crypto market, visit Uber Crypto News.