Cryptocurrency exchange giant Binance has taken significant steps in its ongoing process of disengagement from its stablecoin BUSD. The exchange announced a token burn for idle Binance-pegged BUSD tokens across various blockchain networks.
Additionally, Binance will be delisting trading pairs associated with TUSD (TrueUSD), another stablecoin traded on the platform. This move follows a series of previous announcements regarding the delisting of BUSD trading pairs, signalling a strategic shift for the exchange.
The exchange made this important announcement via its official Twitter account, stating the token burn will primarily affect the following Binance-pegged tokens:
- TUSDOLD on the Binance Smart Chain (BSC)
- BUSD on the Polygon (MATIC) network
- BUSD on the Binance Smart Chain (BSC)
- BUSD on the Binance Coin (BNB) chain
- BUSD on the TRON (TRX) network
Binance token burn and collateral release
It’s worth noting that the exchange issues Binance-pegged tokens as a means to enable the use of tokens from various other blockchain networks within it’s ecosystem. Importantly, these tokens are created only after the platform holds a 100% collateral in the original token. For example, for every 100 B-USDC tokens, the exchange must possess 100 USDC as collateral, ensuring transparency and stability.
This move by the exchange comes as the exchange grapples with changes in the BUSD ecosystem. Paxos, the issuer of BUSD, ceased minting the stablecoin, prompting the exchange to reassess its strategy regarding BUSD. The exchange has been gradually delisting BUSD trading pairs, with eight pairs being removed from its platform earlier.
Community response and transparency
The platform’s community has responded positively to these developments, appreciating the transparency demonstrated by the exchange throughout this process. Transparency is a crucial element in maintaining trust and confidence within the cryptocurrency community.
In addition to these changes, the exchange has also updated its fiat liquidity provider program, offering rebates based on performance from the previous week. This move is in line with the exchange’s efforts to enhance its offerings and services for its users.
At the time of writing, BNB, the native cryptocurrency of the platform, is trading at $213.15, reflecting a minimal 0.04% decrease over the past 24 hours. It will be interesting to see how these developments impact the exchange overall ecosystem and its users in the coming days.
