Binance, a crypto exchange, has urged its users to swap their Binance USDstablecoin (BUSD) for other assets, including a new stablecoin called First Digital USD (FDUSD).
This is because Binance will stop supporting BUSD by February 2024, following Paxos’ decision to end BUSD redemption at the same time.
Binance announced this in a statement on Aug. 31, after some users reported seeing a pop-up message on their mobile app about the upcoming change.
According to Binance, users can trade or convert their BUSD to FDUSD without any fees. FDUSD is a stablecoin that was launched in June by First Digital Group, a trust company based in Hong Kong.
Binance was the first exchange to list FDUSD in late July. Binance also removed eight BUSD trading pairs on Aug. 30.
Binance’s move to phase out BUSD support comes after the U.S. Securities and Exchange Commission (SEC) claimed that BUSD was an unregistered security in a notice it sent to Paxos on Feb. 13.
On the same day, the New York Department of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD.