Binance has announced that it will be phasing out support for Binance USD (BUSD) by February 2024. The exchange has advised its users to convert their BUSD holdings to First Digital USD (FDUSD). BUSD will remain backed 1:1 by USD until support is ended.The decision to phase out BUSD is due to regulatory issues surrounding the stablecoin. Earlier this year, Paxos, the issuer of BUSD, received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) which classified the stablecoin as a security.In response, Binance has begun to push FDUSD as a viable alternative to BUSD. FDUSD is a stablecoin issued by Hong Kong-based First Digital Group and was listed on the platform on July 26. According to First Digital, the stablecoin’s market capitalization surpassed $300 million within the first month of its launch. Binance has also introduced zero trading fees for some of its pairings.Despite enjoying Binance support, FDUSD is yet to gain traction within the crypto community as it is only available on less than five crypto exchanges. Additionally, FDUSD’s 24-hour trading volume is under $100 million.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Asia
Countries
Sentiment	neutral
Relevance Score	8
People	SEC, First Digital Group, Paxos
Companies	Binance, Paxos, U.S. Securities and Exchange Commission (SEC), CoinMarketCap, First Digital Group
Currencies	Ethereum, US Dollar, Bitcoin, Binance USD, First Digital USD
Securities	None