Binance to Suspend BUSD Lending, Shifts Focus to FDUSD

More than
nine months after regulatory turmoil in the United States undermined the future
of Binance’s stablecoin, the exchange has decided to withdraw from its lending
completely. According to an official statement released this week, Binance USD
(BUSD) loans will be suspended as of 25 October 2023. This is another step
towards the complete termination of token support, which is planned for
February of next year.

The latest
statement announced that the Binance Loans service will close all existing BUSD
loans and collateral positions by 25 October. The platform is urging users to
repay any impacted loans before 07:59 (UTC) on the final date to avoid
potential losses.

Binance
Loans will continue to support other stablecoins, including FDUSD, which it is
currently promoti as an alternative to BUSD. Until now, users could borrow
their own BUSD tokens at a projected annual interest rate of 3%.

Finance
Magnates reported
in late August that Binance was preparing to withdraw support for BUSD.

This
was the first time the exchange encouraged its users to transfer the stablecoin
Stablecoin

Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including

Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this Term
to other tokens, including FDUSD launched by the Hong Kong-based First Digital
Group in June.