October 18, 2024
Binance to shut down BUSD lending by October 25

Cryptocurrency exchange Binance will cease lending services for its native stablecoin Binance USD (BUSD) until October 25.

According to reports on October 3 announcement, the exchange will close all outstanding BUSD loan and collateral positions before the end of the month. Users can still borrow and lend on Binance using stablecoins such as Tether (USDT), Dai, TrueUSD (TUSD), and USD Coin (USDC).Currently, users can lend BUSD on Binance at a price of estimated The annual rate of return is 3%.

On August 31, Cointelegraph reported that Binance will cease all services related to its BUSD stablecoin by 2024. Previously, on February 13, New York financial technology company Paxos, the issuer of BUSD stablecoin, stated that it would terminate its relationship with Binance due to the latter’s ongoing litigation with the U.S. Securities and Exchange Commission. Paxos said it will end redemptions from BUSD into underlying U.S. cash and Treasuries in February 2024 and temporarily halt the minting of new BUSD.

Prior to the termination announcement, BUSD was one of the largest stablecoins, with a market capitalization peaking at $23 billion in November 2022. As of the time of publication, its market capitalization has fallen to $2.23 billion.

The discontinuation of BUSD and related services is being phased in.Last month, the exchange pause Withdraw BUSD via BNB Chain, Avalanche, Polygon, Tron and Optimism, but remain open on the Ethereum network. BUSD deposits, on the other hand, remain open on all blockchains, with the exchange urging users to convert their BUSD balances to fiat or other cryptocurrencies before next year.

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