Binance will stop BUSD lending services on October 25
Binance is phasing out BUSD-related services. BUSD withdrawals on various blockchain networks were banned last month. Binance is currently locked in a legal battle with the US Securities and Exchange Commission (SEC).
In a significant development in the cryptocurrency exchange sphere, Binance officially announced the termination of its native stablecoin, Binance USD (BUSD) for lending and borrowing services.
The move is part of a phase-out of BUSD-related services, which will be fully completed by February 2024.
Closing the BUSD loan
In the year According to an announcement made on October 3, 2023, Binance is going to close BUSD lending and borrowing services by October 25, 2023. The exchange closes all BUSD loan and mortgage positions at the end of the month.
Users who have been using BUSD for lending should now explore alternative stablecoins such as Tether (USDT), Dai, TrueUSD (TUSD) and USD Coin (USDC) for their lending needs on the platform.
Previously, users earned an estimated annual percentage yield of 3% when lending BUSD on Binance. However, with this move, BUSD's role in the Binance ecosystem will be significantly reduced.
Interruption of BUSD-related services
Today's announcement follows Binance's standard approach to discontinuing BUSD-related services.
Last month, BUSD withdrawals were banned on several blockchain networks, including BNB Chain, Avalanche, Polygon, Tron, and Optimism. In particular, BUSD mining remains on the Ethereum network.
Although BUSD deposits have been preserved in all blockchains, users are encouraged to convert their BUSD holdings to fiat or other cryptocurrencies before the upcoming 2024 deadline.
This decision to suspend BUSD-related services is intertwined with Binance's ongoing legal disputes with the US Securities and Exchange Commission (SEC).
In the year In February 2023, Paxos, the issuer of the BUSD stablecoin, terminated its relationship with Binance due to the legal uncertainties surrounding the cryptocurrency exchange. Paxos announced its intention to stop redeeming BUSD into base US currency and Treasuries in February 2024, temporarily ending BUSD tokens.
