BUSD market value drops below $1 billion! Binance-Peg collateral assets have been converted to FDUSD

Paxos, the stablecoin issuer, previously collaborated with Binance to launch BUSD. However, in February last year, Paxos faced a regulatory crackdown by US authorities and was ordered to halt further minting. As As a result, Binance actively sought an alternative stablecoin brand and eventually partnered with First Digital Limited, a subsidiary of a Hong Kong financial institution, to issue FDUSD.

Binance announced in November last year that since December 15 last year Support for BUSD products will be discontinued starting today. Users should convert their BUSD assets to other assets supported by Binance or withdraw their BUSD before this date. Users can trade BUSD assets into FDUSD with zero fees on the Binance spot market, or exchange them for FDUSD at a 1:1 ratio on the flash exchange trading platform. Please handle it promptly to ensure asset safety.

Binance-Peg BUSD mortgage assets are converted to FDUSD at a 1:1 ratio

Binance official announced further adjustments today, stating that Binance-Peg BUSD will be converted to FDUSD at a 1:1 ratio. This is part of the previous liquidation of BUSD, which means that BUSD will be released and FDUSD will become the new collateral asset on the Ethereum network.

BUSD was originally a stablecoin issued natively on Ethereum. However, in order to enable more blockchain ecosystems to use BUSD, Binance launched a packaged version of Binance-Peg BUSD. This version tracks the value of BUSD at a 1:1 ratio and is issued on blockchains such as BNBChain, Avalanche and Polygon. In this way, users can conveniently use BUSD on different blockchain networks, providing more possibilities for its application scenarios.

According to the previous announcement, starting from 11:00 on January 2, 2024, the withdrawal business of BUSD will be stopped. After this, the user’s BUSD balance on the Binance account will be automatically converted to FDUSD at a 1:1 ratio. Users can still continue to deposit BUSD into Binance accounts and manually exchange them for FDUSD at a 1:1 ratio until further notice.

BUSD market value fell below US$1 billion

According to CoinGecko data, the market value of BUSD began to decline significantly from US$16.7 billion at the beginning of last year, and has now dropped to US$995 million, a drop of more than 93 %. Due to the sharp decline in market value, BUSD has fallen to sixth place in the stablecoin market value rankings.

Etherscan data shows that among the current total supply of 995 million BUSD, the largest holder is Binance-Peg BUSD, accounting for 56.3077%, and the number is approximately 560 million.

According to Paxos’ statement, they are committed to continuing to provide support for BUSD until February 2024. Users can choose to redeem BUSD in U.S. dollars or convert it to PaxDollar (USDP), a regulated stablecoin also issued by Paxos Trust and also backed by U.S. dollars.

FDUSD ranks among the top five stablecoins

In comparison, since FDUSD was launched on July 26 last year, its market value has continued to rise and has now reached US$1.81 billion, surpassing BUSD It has become the fifth largest stablecoin by market value, trailing only USDT (USD 92.8 billion), USDC (USD 25.1 billion), DAI (USD 5.3 billion), and TUSD (USD 2.3 billion).

The above is the detailed content of BUSD market value drops below $1 billion! Binance-Peg collateral assets have been converted to FDUSD. For more information, please follow other related articles on the PHP Chinese website!