Binance to Suspend BUSD Lending This Month, Shifts Focus to FDUSD

<p>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. </p><p>Binance Pulls Out of BUSD
Lending</p><p>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. </p><p>Binance
Loans will continue to support other stablecoins, including FDUSD, which it is
currently promoting as an alternative to BUSD. Until now, users could borrow
their own BUSD tokens at a projected annual interest rate of 3%.</p><p>Finance
Magnates reported
in late August that <a href="https://www.financemagnates.com/cryptocurrency/binance-shifts-gears-phases-out-busd-support-introduces-new-alternative-stablecoin/" target="_blank" rel="follow">Binance was preparing to withdraw support for BUSD</a>.</p><blockquote><p lang="en" dir="ltr">As Paxos has halted minting of new BUSD, <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> will now gradually remove support for the stablecoin on our platform.BUSD will always remain backed 1:1 by USD, and we continue to support a wide range of other stablecoins.Find more details below.</p>— Binance (@binance) <a href="https://twitter.com/binance/status/1697159019234791909?ref_src=twsrc%5Etfw">August 31, 2023</a></blockquote><p>This
was the first time the exchange encouraged its users to transfer the <a href="https://www.financemagnates.com/terms/s/stablecoin/">stablecoin</a>
to other tokens, including FDUSD launched by the Hong Kong-based First Digital
Group in June.</p><blockquote><p lang="en" dir="ltr">First Digital, a Hong Kong licensed trust company, launches a new USD pegged stablecoin (FDUSD), on <a href="https://twitter.com/hashtag/BNB?src=hash&amp;ref_src=twsrc%5Etfw">#BNB</a> Smart Chain.</p>— CZ