Binance, one of the world’s largest cryptocurrency exchanges, has announced that they will drop support for BUSD, a stablecoin launched in 2019 in a collaboration with Stably. The exchange will no longer support BUSD by 2024 and will instead back a new stablecoin.
According to the announcement, Binance will be launching a new stablecoin to replace BUSD, called BUSD-2. Binance has not revealed the exact details behind BUSD-2 but has stated that it will leverage Binance Chain to provide users with a more efficient, cost-effective, and secure way to carry out transactions.
The move comes as part of an effort by Binance to move away from relying on other stablecoins, such as USDC, GUSD, and PAX, in order to create its own platform for a more secure and stable trading experience. Binance also stated that BUSD-2 will be interoperable with other decentralized platforms.
By dropping support for BUSD, Binance hopes to create a more improvisable and secure environment for traders. The move is seen as a positive step for the larger cryptocurrency industry and will likely benefit traders in the long run.