Crypto exchange Binance has announced it will cease borrowing and lending services for its native stablecoin BUSD by October 25th.
Outstanding BUSD loans and collateral positions will be closed by the end of this month. Lending and borrowing will continue for other major stablecoins like USDT, USDC, Dai, and TUSD.
The wind-down of BUSD services comes after issuer Paxos said it would end its relationship with Binance next year amid SEC litigation. BUSD was once a top stablecoin but has declined to a $2 billion market cap.
Binance has been terminating BUSD in phases, already suspending withdrawals on some blockchains last month. Deposits remain open for now, but Binance is advising users to convert balances to fiat or other cryptocurrencies.
The complete termination of BUSD by next year underscores Binance’s regulatory headaches. As the exchange cuts ties with the formerly popular stablecoin, users will need to migrate lending activity to alternatives.
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