In a recent statement, Binance announced the expansion of its free trading options for the spot and margin trading pairs of the First Digital USD (FDUSD) stablecoin. Starting from December 8, Binance users will enjoy zero maker and taker fees for six digital assets paired with FDUSD, namely BNB, Dogecoin, Chainlink, Ethereum, Solana, and XRP. This move aims to incentivize users to trade using the FDUSD stablecoin.
Exclusions and Disqualifications
While Binance encourages the use of FDUSD, the exchange noted that these free trading options would not be eligible for BNB fee discounts, rebates, and other adjustments. Additionally, Binance reserves the right to disqualify trades that are deemed wash trades, involve illegal bulk account registrations, or display attributes of self-dealing or market manipulation. This measure is intended to ensure the integrity of the trading environment and protect users from fraudulent activities.
Binance’s decision to expand free trading options for FDUSD pairs is in line with its plan to phase out support for Binance USD (BUSD) by December 15. The exchange has urged users to convert their BUSD holdings into FDUSD before the end of the year. BUSD withdrawals will be discontinued by December 31, and BUSD balances will be automatically converted to FDUSD. This move is a response to regulatory issues surrounding BUSD, with the stablecoin being classified as a security by the U.S. Securities and Exchange Commission (SEC).
The Rise and Fall of BUSD
Earlier this year, BUSD’s issuer, Paxos, suspended the stablecoin’s issuance following regulatory scrutiny. Despite Binance and Paxos rejecting the SEC’s classification of BUSD as a security, the crypto community quickly lost confidence in the stablecoin. As a result, its circulating supply diminished to less than $2 billion. This decline in popularity is evident, with the stablecoin’s circulating supply currently being less than 1 billion, as data from CryptoSlate indicates.
In light of the challenges faced by BUSD, Binance has been actively promoting FDUSD as a viable alternative. The exchange has introduced new products for the digital asset and offered incentives to encourage its use. However, FDUSD’s circulating supply remains relatively low, and the stablecoin is only available on a limited number of crypto exchanges. Binance’s efforts aim to establish FDUSD as a trusted and widely accepted stablecoin within the crypto community.
Binance’s decision to expand free trading options for FDUSD pairs demonstrates its commitment to driving the adoption and usage of this stablecoin. By offering zero maker and taker fees for select digital assets, Binance incentivizes users to trade using FDUSD. However, the exchange’s strict disqualification criteria and the phasing out of BUSD highlight the importance of adhering to regulatory standards and ensuring the integrity of the trading environment. As Binance continues to focus on promoting FDUSD, it will be interesting to see how the stablecoin evolves and whether it gains broader acceptance in the crypto market.