In a move that could impact Shiba Inu (SHIB) and XRP holders, Binance has announced its intention to terminate all BUSD loan and collateral positions via Binance Loans by October 25, 2023. The cryptocurrency exchange has advised users to repay any outstanding loans before the given deadline.
The decision follows a recent move by Paxos to stop minting BUSD due to regulatory pressures. Despite this change, Binance's overcollateralized open-term product, Binance Flexible Loan, will continue accepting other stablecoins such as FDUSD, USDT, TUSD, USDC, and DAI for isolated loan positions.
Unique Loan-to-value ratios will apply to each loan pair on the platform. This development may affect holders of cryptocurrencies like Shiba Inu and XRP, which are currently loanable on Binance.
Binance has also stated that it plans to end support for BUSD entirely by February 2024. This step is likely to prompt changes in the strategies of both retail and institutional investors who use Binance Loans. The platform has urged its users to consider these developments when planning their future investment activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.