BINANCE TO SUPPORT BUSD WHILE EXPLORING NON-USD STABLECOINS, CZ SAYS

Last updated: June 19, 2025, 23:24 | Written by: Meltem Demirors

In a move that has sent ripples throughout the cryptocurrency market, Binance, the world's leading cryptocurrency exchange, has announced it will continue supporting its Binance USD (BUSD) stablecoin. As a result of the enforcement action, the Binance CEO said that BUSD market cap will decrease over time and the exchange will explore non-USD based stablecoins. Zhao also said that Binance will continue to support the stablecoin on its exchange, while acknowledging that users may well migrate to other stablecoin tokens as a result of theThis decision comes even after issuer Paxos Trust Company faced a cease and desist order from American regulators, specifically the New York Department of Financial Services (NYDFS), which instructed Paxos to halt the minting of new BUSD tokens.This unexpected turn of events, coupled with mounting regulatory pressure, has prompted Binance to actively explore stablecoin alternatives not pegged to the U.S. dollar.The announcement, spearheaded by Binance CEO Changpeng Zhao (CZ), aims to reassure BUSD holders while simultaneously paving the way for a more diversified stablecoin ecosystem on the platform.

The situation raises several crucial questions: What does this mean for BUSD holders? Related: Binance to support BUSD while exploring non-USD stablecoins, CZ says. Binance has been consistently trying to link sports with the Web3 space. On JWhat are the potential implications for the broader stablecoin market?And what strategies is Binance employing to navigate this increasingly complex regulatory landscape? Cryptocurrency exchange Binance plans to continue supporting its Binance USD (BUSD) stablecoin despite its. World One News Page: MondayWe will delve into the specifics of Binance's decision, the reasons behind it, and what the future holds for BUSD and other stablecoins on the Binance platform.Prepare to explore the intricacies of this evolving situation and understand the impact on your crypto portfolio.

Understanding the BUSD Situation

To fully grasp the significance of Binance's announcement, it's essential to understand the background of the BUSD situation. Binance CEO Changpeng CZ Zhao says the exchange will continue to support BUSD despite issuer Paxos being ordered to stop Binance to support BUSD while exploring non-USD stablecoins, CZ says - XBT.MarketBinance USD (BUSD) is a stablecoin pegged to the U.S. dollar, meaning that each BUSD token is intended to be worth one U.S. dollar. This is why they mention they are looking for for non-USD stablecoins. Ironically, in the short-term it might help Tether. Paxos and Circle are clearly more responsable stablecoin issuers, but being US-based they are also more at the mercy of US regulators which are clearly just looking for any company they can hit to make a point.It was created through a partnership between Binance and Paxos Trust Company, a regulated financial institution based in New York. Binance CEO Changpeng CZ Zhao says the exchange will continue to support BUSD despite issuer Paxos being ordered to stop minting the stablecoin by the U.S. SEC and New York regulators.Paxos was responsible for issuing and redeeming BUSD, ensuring that it maintained its 1:1 peg with the dollar through reserves held in custody.

However, in February 2023, the NYDFS ordered Paxos to stop minting new BUSD tokens, citing ""unresolved issues"" related to Paxos' oversight of BUSD. Related: Binance to support BUSD while exploring non-USD stablecoins, CZ says. BUSD is the seventh largest cryptocurrency by market value at the time of writing, with a market capitalization ofThe Securities and Exchange Commission (SEC) has also weighed in, reportedly considering whether BUSD is an unregistered security. Cryptocurrency exchange Binance plans to continue supporting its Binance USD (BUSD) stablecoin despite its issuer Paxos facing a stop order from American regulators. As reported by Cointelegraph, the New York Department of Financial Services (NYDFS) has ordered blockchain firm Paxos to cease issuing dollar-pegged stablecoin BUSD.This regulatory scrutiny placed significant pressure on BUSD, leading to concerns about its long-term viability and its potential impact on the crypto ecosystem.

Despite these challenges, Binance has affirmed its commitment to supporting BUSD, at least for the time being. Cryptocurrency exchange Binance plans to continue supporting its Binance USD stablecoin despite its issuer Paxos facing a stop order from American regulators.As reported by Cointelegraph, the New York Department of Financial Services (NYDFS) has ordered blockchain firm Paxos to cease issuing dollar-pegged stablecoin BUSD.This decision appears to be driven by a desire to protect its users who hold BUSD and to avoid a potential market crash that could result from a sudden and forced delisting of the stablecoin. BUSD. A thread. 1/8. In summary, BUSD is issued and redeemed by Paxos. And funds are SAFU! CZ Binance (@cz_binance) Febru. According to Zhao, Paxos will continue to service BUSD and manage redemptions and has also made assurances of its reserves which have been audited by multiple parties.Binance has consistently stated that user funds are safe and that Paxos continues to manage BUSD redemptions.

Paxos' Role and Reserve Audits

Paxos has played a crucial role in maintaining the stability and credibility of BUSD.As the issuer of the stablecoin, Paxos is responsible for holding the reserves that back BUSD and ensuring that users can always redeem their tokens for U.S. dollars.According to Binance CEO CZ, Paxos will continue to service BUSD and manage redemptions, even after the cessation of minting new tokens. A Twitter thread on Feb. 13 noted that Paxos is regulated by the NYDFS and BUSD is wholly owned and managed by Paxos. BUSD. A thread. 1/8In summary, BUSD is issued and redeemed by Paxos. And funds are SAFU! CZ Binance (@cz_binance) FebruPaxos has also made assurances regarding its reserves, which have been audited by multiple parties.

These audits are essential for verifying that Paxos holds sufficient assets to cover all outstanding BUSD tokens.The transparency and reliability of these audits contribute significantly to the confidence in BUSD, even amidst the regulatory uncertainty.Users are encouraged to review the audit reports and other disclosures from Paxos to assess the stability of BUSD for themselves.

Binance's Continued Support for BUSD

Despite the regulatory headwinds, Binance is committed to supporting BUSD, stating that users can continue to withdraw or convert their BUSD on the exchange. Binance, the world s leading cryptocurrency exchange, has announced it will gradually discontinue support for Binance USD (BUSD) stablecoin by February 2025. If you re a BUSD holder, this directly affects you.However, Binance also acknowledges that the market capitalization of BUSD is likely to decrease over time, as the minting of new tokens has been halted and users may choose to migrate to other stablecoins. Binance to support BUSD while exploring non-USD stablecoins, CZ says. Binance CEO Changpeng CZ Zhao says the exchange will continue to support BUSD despite issuer Paxos being ordered to stop minting the stablecoin by the U.S. SEC and New York regulators.To facilitate this transition, Binance is providing various options for BUSD holders, including:

Direct Redemption: Users can redeem their BUSD directly with Paxos for U.S. dollars.
Conversion to Other Stablecoins: Binance is offering seamless conversion options from BUSD to other popular stablecoins, such as USDT (Tether) and USDC (USD Coin).
Trading on Binance: Users can continue to trade BUSD against other cryptocurrencies on the Binance exchange.

Binance is actively communicating these options to its users, encouraging them to manage their BUSD holdings responsibly and to take advantage of the available resources to mitigate any potential risks. Binance to support BUSD while exploring non-USD stablecoins, CZ says Grand Master Binance BUSD Paxos SEC FebruThe exchange has also extended the support for BUSD until February 2025, giving users ample time to adjust their portfolios. Binance to support BUSD while exploring non-USD stablecoins, CZ says Binance CEO Changpeng CZ Zhao says the exchange will continue to support BUSD despite issuer Paxos being ordered to stop minting the stablecoin by the U.S. SEC and New York regulators.This extended timeline highlights Binance's dedication to a smooth and user-friendly transition.

Exploring Non-USD Stablecoins: A Strategic Shift

The regulatory scrutiny surrounding BUSD has prompted Binance to explore alternative stablecoins, particularly those not pegged to the U.S. dollar.This strategic shift reflects a broader trend in the cryptocurrency industry, as projects seek to diversify their stablecoin offerings and reduce their reliance on the U.S. dollar.

CZ has explicitly stated that Binance will be exploring non-USD based stablecoins. Binance to support BUSD while exploring non-USD stablecoins, CZ says Gareth Jenkinson 20 摘要: Binance CEO Changpeng CZ Zhao says the exchange will continue to support BUSD despite issuer Paxos being ordered to stop minting the stablecoin by the U.S. SEC and New York regulators.This exploration is driven by several factors:

Regulatory Diversification: Reducing exposure to U.S. regulations and potential enforcement actions.
Geographic Expansion: Catering to users in different regions who may prefer stablecoins pegged to their local currencies.
Innovation: Fostering the development of new and innovative stablecoin models that offer unique features and benefits.

Binance's exploration of non-USD stablecoins could potentially lead to the listing of stablecoins pegged to other major currencies, such as the Euro (EUR), the Japanese Yen (JPY), or the British Pound (GBP).It could also involve the development of algorithmic stablecoins or other innovative stablecoin models that are not directly pegged to any fiat currency.The long-term success of this strategy will depend on Binance's ability to identify and list stablecoins that are secure, reliable, and widely adopted by its users.

Potential Benefits of Non-USD Stablecoins

The introduction of non-USD stablecoins on Binance could offer several potential benefits to users:

Reduced Exchange Rate Risk: Users who primarily transact in currencies other than the U.S. dollar can avoid exchange rate fluctuations by using stablecoins pegged to their local currencies.
Increased Access to Crypto Markets: Non-USD stablecoins can make it easier for users in certain regions to access and participate in the cryptocurrency market.
Greater Choice and Flexibility: Users can choose from a wider range of stablecoins that best suit their individual needs and preferences.

Ultimately, the success of non-USD stablecoins will depend on their ability to gain widespread adoption and maintain their stability and reliability.Binance's role in listing and supporting these stablecoins will be crucial in driving their adoption and ensuring their long-term viability.

Impact on the Stablecoin Market

The BUSD situation and Binance's exploration of non-USD stablecoins have significant implications for the broader stablecoin market. Cryptocurrency exchange Binance plans to continue supporting its Binance USD (BUSD) stablecoin despite its issuer, Paxos Trust Company, facing a stop order [ ]The regulatory scrutiny surrounding BUSD has highlighted the risks associated with stablecoins that are closely tied to the U.S. regulatory framework.

Ironically, in the short term, the regulatory pressure on BUSD might benefit Tether (USDT), the largest stablecoin by market capitalization.While Tether has faced its own controversies in the past, it has demonstrated resilience and continues to be widely used across the cryptocurrency ecosystem.

The situation also underscores the importance of transparency and regulatory compliance in the stablecoin industry.Stablecoin issuers that prioritize transparency and work closely with regulators are more likely to gain the trust of users and maintain their long-term viability.

The Future of Stablecoin Regulation

The regulatory landscape for stablecoins is rapidly evolving.Governments and regulatory agencies around the world are actively developing frameworks for regulating stablecoins, aiming to address concerns related to consumer protection, financial stability, and illicit finance.

It is likely that stablecoin regulation will become more comprehensive and stringent in the coming years.This could include requirements for stablecoin issuers to hold reserves in specific types of assets, to undergo regular audits, and to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.

The future of stablecoins will depend on the ability of issuers to adapt to these evolving regulations and to demonstrate their commitment to transparency, security, and compliance. Binance to support BUSD while exploring non-USD stablecoins, CZ saysStablecoins that meet these standards are likely to play a significant role in the future of finance, while those that fail to do so may face increasing scrutiny and regulatory challenges.

Practical Advice for BUSD Holders

If you are currently holding BUSD, here are some practical steps you can take to manage your holdings in light of the current situation:

Stay Informed: Keep up-to-date on the latest developments regarding BUSD and Binance's plans. Major cryptocurrency exchange Binance announced it will cease support for all Binance USD (BUSD) products starting on Dec. 15 following Paxos halting the minting of new coins. In a Nov. 29 notice, Binance said users should withdraw or convert their existing BUSD on the exchange into other assets before Dec. 15.Follow Binance's official announcements and reputable news sources for accurate information.
Assess Your Risk Tolerance: Consider your individual risk tolerance and investment goals. Cryptocurrency exchange Binance plans to continue supporting its Binance USD stablecoin despite its issuer, Paxos Trust Company, facing a stop order from American regulators. As reported byDetermine how much risk you are willing to take with your BUSD holdings.
Diversify Your Holdings: Consider diversifying your stablecoin holdings by converting some of your BUSD to other stablecoins, such as USDT or USDC.This can help to reduce your exposure to any single stablecoin.
Explore Redemption Options: Familiarize yourself with the available redemption options for BUSD. Cryptocurrency exchange Binance plans to continue supporting its Binance USD (BUSD) stablecoin despite its issuer, Paxos Trust Company, facing a stop order from American regulators.As reported by Cointelegraph, the New York Department of Financial Services (NYDFS) has ordered blockchain firm PaxosYou can redeem your BUSD directly with Paxos or convert it to other assets on Binance.
Take Action Before the Deadline: Be aware of the deadline for BUSD support on Binance, which is currently set for February 2025. Binance to support BUSD while exploring non-USD stablecoins, CZ says Satoshi Prime Uncategorized FebruMake sure to take action to manage your BUSD holdings before this deadline.

Remember that the cryptocurrency market is inherently volatile, and there are always risks involved in holding any digital asset.By staying informed, assessing your risk tolerance, and taking appropriate action, you can mitigate these risks and protect your investments.

Binance's Web3 Integration and Sports Ventures

It's worth noting that Binance has been actively integrating with the Web3 space and pursuing ventures in the sports world. African Mini-Factories (~2025) Autonomous Research Centers (~2025) VideoWhile seemingly unrelated to the BUSD situation, these initiatives reflect Binance's broader strategy of expanding its ecosystem and attracting new users.

Binance's Web3 integration efforts involve supporting decentralized applications (dApps), non-fungible tokens (NFTs), and other blockchain-based technologies.By embracing Web3, Binance aims to position itself as a leading platform for the next generation of the internet.

Binance has also been consistently trying to link sports with the Web3 space.This includes partnerships with sports teams, athletes, and leagues to create NFT collections, fan tokens, and other blockchain-based experiences.These initiatives are designed to engage sports fans and introduce them to the world of cryptocurrency and blockchain technology.

While these ventures may not directly impact the BUSD situation, they demonstrate Binance's commitment to innovation and its efforts to build a comprehensive and diverse ecosystem for its users.

Conclusion

The situation surrounding BUSD and Binance's exploration of non-USD stablecoins highlights the dynamic and evolving nature of the cryptocurrency market.While Binance has reaffirmed its commitment to supporting BUSD, the regulatory challenges faced by Paxos have prompted the exchange to explore alternative stablecoin options.This strategic shift reflects a broader trend in the industry towards diversification and regulatory compliance.The future of BUSD and the stablecoin market as a whole will depend on the ability of issuers to adapt to evolving regulations, maintain transparency and security, and gain the trust of users.

For BUSD holders, it is crucial to stay informed, assess your risk tolerance, and take appropriate action to manage your holdings.By diversifying your stablecoin portfolio and exploring alternative options, you can mitigate potential risks and protect your investments.Remember, the cryptocurrency market is inherently volatile, and it's essential to make informed decisions based on your individual circumstances.

Key takeaways:

Binance will continue supporting BUSD while exploring non-USD stablecoins.
Paxos will continue to service BUSD redemptions.
Binance is providing options for BUSD holders to convert or redeem their tokens.
Regulatory scrutiny is driving the exploration of non-USD stablecoins.
Transparency and compliance are crucial for the future of stablecoins.

As the cryptocurrency market continues to evolve, it's essential to stay informed and adapt to changing conditions.By understanding the risks and opportunities, you can make informed decisions and navigate the complexities of the crypto world with confidence.Stay tuned for further updates on the BUSD situation and the development of non-USD stablecoins on the Binance platform.Consider exploring other stablecoin options to diversify your portfolio and manage your risk effectively.Remember to always do your own research (DYOR) before making any investment decisions.