Binance, the world's largest cryptocurrency exchange by trading volume, has completed its largest direct burn since February of its stablecoin, BUSD, on the BNB Chain.
The exchange burned 700 million BUSD by sending it to the Null Address, a special address that destroyed the tokens and removed them from circulation.
This is the largest direct burn of BUSD since February of this year, when Binance burned 595 million BUSD.
Regulated blockchain platform Paxos, which mints BUSD in partnership with Binance, has announced that it will terminate its relationship with Binance and stop issuing new BUSD tokens, as directed by the New York Department of Financial Services (NYDFS). It is known that the supply drop in the BUSD token is due to this.
In addition to the BUSD burn, Binance also burned 250 million USDC, another popular stablecoin pegged to the US dollar.
USDC tokens were burned with the Mint&Burn address, meaning they were first minted on the BNB Chain and then immediately destroyed. This process allows Binance to issue an equivalent amount of USDC on the Ethereum network, where it has more liquidity and benefits.
The USDC burn is part of Binance's strategy to bridge different blockchains and offer more options to its users. Binance burns USDC on the BNB Chain, freeing up space and resources on the network and transferring them to Ethereum, where USDC can be used for various decentralized applications and protocols.
*Not investment advice.