Binance to discontinue support for BUSD in 2024

Cryptocurrency exchange Binance informed clients of the intention to discontinue support for its own stablecoin BUSD in 2024.

“BUSD will always be backed by US dollars at a 1-to-1 ratio,” the platform said.

In February NYDFS initiated an investigation into Paxos, the issuer of stablecoins. The regulator ordered the company to cease issuing BUSD. The firm also halted its cooperation with Binance.

The company halted issuing new stablecoins in line with regulator instructions. Buyback and conversion operations are supported through at least February 2024.

In March BUSD’s market capitalization fell below $10 billion for the first time since late June 2021. In June the metric fell to $4.35 billion. In the ranking of “stablecoins” the asset slipped to third place behind DAI.

As of writing, BUSD’s market value was below $3.1 billion.

In March the CFTC filed a lawsuit against Binance and its CEO Changpeng Zhao. In June the SEC filed. The Commission brought 13 charges, including the sale of unregistered securities.

On July 25, Binance filed a motion in court to dismiss the CFTC’s complaint.

In August Zhao criticized the stablecoin USDT, calling it a “black box” with a “certain” level of risk. He also said that Binance is working on an algorithmic “stablecoin”.