Latest BUSD (BUSD) News Update

Deep Dive

1. Binance Holds 87% of Trump-Linked USD1 (10 February 2026)

Overview: A Forbes report, confirmed by blockchain data, states Binance holds about 87% ($4.7B) of the circulating supply of USD1, a stablecoin issued by Trump-affiliated World Liberty Financial. This follows Binance converting BUSD collateral into USD1 and launching promotions for the token.

What this means: This is neutral for BUSD as it confirms its active phase-out, but bearish for its ecosystem role. The extreme concentration at a single exchange creates counterparty and regulatory risks for USD1, potentially drawing more scrutiny to Binance's stablecoin partnerships. (Forbes)

2. SAFU Fund Hits 10,455 BTC in $734M Bet (10 February 2026)

Overview: Binance's Secure Asset Fund for Users (SAFU) now holds 10,455 BTC (~$734M), per Wu Blockchain. This marks significant progress in its 30-day plan to convert the entire $1B fund from stablecoins (like the former BUSD and USDC) into Bitcoin.

What this means: This is a long-term strategic shift away from stablecoins like BUSD for Binance's core reserves. It signals strong institutional confidence in Bitcoin as a primary store of value but reduces direct stablecoin backing for user protection, introducing new volatility to the SAFU fund's value.

Conclusion

BUSD is being systematically retired, with its former collateral and reserve roles being assumed by politically-linked USD1 and Bitcoin. Will regulatory scrutiny of USD1's concentration accelerate the adoption of more decentralized stablecoin alternatives?

Deep Dive

1. @0xOnlyCalls: BUSD Market Share Collapse Bearish

"Binance's BUSD market share falls to 5% from 25% at its peak. Regulatory pressures create a shift towards decentralized stablecoins like $USDC and $DAI. Expect continued decline..." – @0xOnlyCalls (6,265 followers · 2 July 2025 12:10 PM UTC) View original post What this means: This is bearish for BUSD because it quantifies a severe loss of dominance and attributes it to persistent regulatory headwinds, signaling a structural decline in its ecosystem role.

2. @RayzenVale: Binance Converting BUSD to USD1 Neutral

"Even BUSD has been converted to USD1. With $3b volume everyday" – @RayzenVale (606 followers · 8 January 2026 12:08 AM UTC) View original post What this means: This is neutral for BUSD as it describes a managed transition rather than a failure; Binance is systematically replacing it with a new stablecoin, which maintains user access to dollar liquidity but ends BUSD's primary function.

3. @Dmailofficial: Legacy dApp Support for BUSD Neutral

"USDT, USDC, ICP, DMAIL, and BUSD are supported." – @Dmailofficial (458,245 followers · 23 January 2026 02:54 AM UTC) View original post What this means: This is neutral for BUSD because it shows the token remains technically integrated in some applications, but its listing alongside major stablecoins suggests it's becoming legacy infrastructure rather than a growth driver.

Conclusion

The consensus on BUSD is bearish, viewing it as a regulated stablecoin in managed decline, systematically being replaced within the Binance ecosystem. Watch the circulating supply, which has fallen from over $23 billion to just $40 million, for confirmation of its final phase-out.

Deep Dive

1. Binance-Peg BUSD Deprecation (Q1 2026)

Overview: Binance will auto-convert all Binance-Peg BUSD collateral positions to USD1, a Trump-linked stablecoin, by Q1 2026 (CoinMarketCap). This follows Abu Dhabi’s MGX $2B investment in Binance settled in USD1, which now anchors the exchange’s liquidity framework.

What this means: Neutral for BUSD holders, as conversions are 1:1, but bearish long-term due to reduced ecosystem relevance. Users must adapt to new stablecoin dynamics.

2. Regulatory Compliance Overhaul (Ongoing)

Overview: Post-Paxos’ $48.5M settlement with NYDFS in August 2025, BUSD issuers now conduct monthly reserve audits and publish real-time attestations to comply with MiCA regulations in the EU (Finance Magnates).

What this means: Bullish for transparency but increases operational costs, potentially accelerating BUSD’s replacement by FDUSD in Binance’s ecosystem.

3. Liquidity Migration (2026)

Overview: Binance will delist remaining BUSD spot and derivatives pairs by mid-2026, redirecting liquidity to FDUSD and USD1. Current BUSD turnover is 0.0184 (low liquidity risk).

What this means: Bearish for traders relying on BUSD pairs. Monitor exchange announcements for migration deadlines and fee incentives.

Conclusion

BUSD’s roadmap reflects a managed sunset, prioritizing regulatory compliance and ecosystem alignment with Binance’s new stablecoin partners. While redemptions remain 1:1 until at least 2027, the token’s utility is diminishing.

How will Binance’s pivot to USD1 reshape stablecoin liquidity in DeFi markets?