Binance, the world’s largest cryptocurrency exchange, announced today that it would be dropping support for the BUSD Stablecoin by the end of 2024. Instead, the exchange is promoting its own native stablecoin, the Binance USD (BUSD), which was recently launched in partnership with crypto asset leader Paxos.
The announcement follows Binance’s removal of BUSD from its platform in August 2019, citing regulatory concerns. At the time, the exchange cited a lack of confidence in the independent auditor’s ability to effectively monitor the BUSD system, which could potentially put Binance customers at risk.
In a statement, Binance CEO Changpeng Zhao said: “At Binance, we always prioritize the safety of our customers’ funds above all else. We have decided to discontinue support for BUSD as a safety measure to ensure the best user experience.”
The BUSD stablecoin was launched in July 2017 and was designed as a regulated alternative to popular stablecoins like Tether and TrueUSD. While the decision to stop support for BUSD comes as a blow, Binance’s new BUSD Stablecoin provides a robust alternative that can be used on the platform. Furthermore, customers of Paxos can now use Binance USD on the Paxos platform to transfer funds cross-border without having to worry about expensive fees or long wait times.
The move follows a string of decentralized finance (DeFi) protocols – such as MakerDAO and Compound – which have already been integrated with the Binance platform. According to the company, BUSD will play a key role in allowing customers to gain exposure to DeFi protocols, using BUSD as the stablecoin of choice.