Binance Begins Process Of Axing BUSD Stablecoin
Binance has announced its intention to end support for its BUSD stablecoin due to a regulatory issue and a halt in production, and is now preparing to begin the end of its support.
Binance announced on September 14 that it will begin burning several Binance-pegged tokens, including four BUSD tokens across different blockchains. The tokens will be burned on listed blockchains, and the equivalent amount of tokens used as collateral on native networks will be released. The exchange plans to release the equivalent amount of tokens on their native networks as collateral.
The BUSD tokens are listed across four networks: MATIC, TRX, BSC, and BNB. The TUSDOLD token on BSC will be burned, making it the only non-BUSD token on the list. The collateral will be the equivalent of Binance-pegged tokens burned. If 1,000 BUSD on MATIC is burned, the equivalent on the native blockchain will be released by the exchange.
The BUSD stablecoin faced criticism in early 2023 when the SEC accused it of being an unregistered security. Binance announced plans to stop supporting the stablecoin by 2024, with Paxos halting all BUSD redemptions in February 2024. Binance’s withdrawal is expected shortly after this. The SEC’s legal action is expected.
(With inputs from Shikha Singh)
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