Binance Discontinues Support for Pax Dollar (USDP)
In a significant update for the cryptocurrency community, Binance has declared plans to discontinue support for Pax Dollar (USDP) on September 24. The transition, which commences at 03:00 UTC, involves a comprehensive withdrawal of the stablecoin from several of its services including spot trading, deposits, and margin trading.
Reasons for Discontinuation
The exchange emphasized that its decision stems from a routine assessment of the assets it lists. Key factors influencing this process encompass trading volumes, liquidity levels, network security, project progression, public interactions, regulatory obligations, and changes in token supply. Notably, Binance did not cite any specific incident that prompted the decision regarding USDP nor did it imply any issues concerning the stablecoin’s dollar backing or redemption process.
Timeline of Changes
Starting from September 11, users will start to see restrictions on USDP. For instance:
- By 03:00 UTC, Binance will remove USDP and associated trading pairs from its One-Click Buy and Sell services.
- By 06:00 UTC, lending services related to USDP will cease.
- By September 16, USDP will be removed from Binance Pay and the Binance Pool.
- At 07:00 UTC on September 16, flexible-rate lending and VIP Loan services for USDP will halt.
- Margin trading for USDP wraps up at 10:00 UTC on September 16, with pending orders being canceled and unresolved positions settled.
By September 17 at 07:00 UTC, USDP will no longer be part of the Binance Earn functions, ensuring that any remaining holdings are redeemed and transferred into users’ spot wallets.
Final Deadline and User Actions
Binance has firmly set the final deadline for all trading activities to cease at 03:00 UTC on September 24, with further automated cancellations of outstanding orders and trading bots in operation. Users are urged to modify their bot strategies accordingly before the cutoff time to avoid transaction interruptions.
Looking beyond the trading limitations, USDP will cease to be supported by several additional Binance services, including:
- The small-balance conversion lane on September 23.
- Binance Convert at 02:00 UTC on September 24, right before trading concludes.
However, USDP balances will remain in user wallets post-trade suspension, although users may need to change their settings to view any remaining asset valuations.
Post-Discontinuation Support
Deposits for USDP will stop being credited on September 25, so users are advised to check their transaction details meticulously. While Binance’s removal of USDP does not eliminate the stablecoin itself or affect its operations on other platforms, holders can continue redeeming USDP as per Paxos’ guidelines. Furthermore, Binance will allow users to withdraw any USDP remaining on the platform until November 24, at 03:00 UTC, providing a two-month window for balances to be processed before the possibility of conversion into another stablecoin.
Lastly, any decision regarding the conversion of residual USDP holdings post-deadline remains tentative until further notice from Binance, including potential impacts on exchange rates. Users are encouraged to act promptly regarding their balances in light of the outlined timeframes and changing service availability.
