Khaberni - Stablecoins are undergoing radical transformations on the Binance platform, driven by three main engines: supply changes (especially after the cessation of BUSD support), tightening of global regulatory frameworks (particularly in Europe with the MiCA regulation), and competition from new “institutional” issues that bridge traditional payments and web3, alongside the indirect impact of Bitcoin price fluctuations on liquidity flows and trader behavior. In this article, we will draw a practical roadmap for the future of stablecoins on Binance during 2025 and beyond, highlighting opportunities and risks for both beginners and professionals alike.
1) Post BUSD: Reallocating the infrastructure for liquidity
After the Paxos decision to stop minting BUSD, Binance announced a phased termination of BUSD support and urged users to switch to alternative stablecoins, with trading pair delistings and conversion facilitations to alternatives like FDUSD during 2023–2024. This step was not a minor detail; it reshaped liquidity sources on the platform and pushed traders to reevaluate their preferred stablecoins and reference pairs.
The biggest beneficiary of this was First Digital USD (FDUSD), which is backed by short-term cash/bond reserves and a licensed custodian in Hong Kong, with expanding listings and trading volumes on Binance becoming a practical alternative in many pairs—also experiencing expansion of issuance networks (like a Solana version) and fee reductions (zero-fee) at intermittent periods to encourage adoption.
2) Europe changes the game: MiCA and the split between “licensed” and “unlicensed”
As of June 30, 2024, MiCA requirements in the European Economic Area started imposing strict standards on stablecoin issuers, directly reflecting on Binance’s offerings there. The platform announced the restriction/removal of trading for “non-compliant” stablecoins for users in the region, while keeping deposit/withdrawal capabilities and conversions to compliant alternatives. The result: a new coexistence on Binance between two categories of stablecoins inside Europe—“licensed” available for full trading, and “unlicensed” restricted.
Meanwhile, Circle succeeded in obtaining legal status within the EU through its French entity (EMI registered with regulatory authority ACPR), allowing the issuance of USDC and EURC as electronic money tokens compliant with MiCA. This puts USDC at the heart of the “regulation-compliant” liquidity map on Binance for European users, making the availability of pairs and liquidity built on it more likely over time.
For users: If you are trading from Europe on Binance, expect that your choices in stablecoins have regulatory dimensions—not just technical—with liquidity gradually shifting towards MiCA-compliant issuances and the reclassification of pairs accordingly.
3) The diversity of institutional releases: PYUSD as a model
The year 2025 also saw accelerated talk about PYUSD (PayPal’s stablecoin) as an “institutional” player with a broad payment gateway. Although PYUSD’s share is still limited compared to market giants, initiatives like balance yields within the PayPal ecosystem whet users' appetites and add new competition, potentially reflected in expansions of listings and integrations in major exchanges—and Binance is no exception. This dynamic means that the stablecoin market on the platform may expand to include new options with strong “use channels” beyond pure trading.
4) Network maps and technical infrastructure: Where is it minted and what is supported?
An essential aspect for professionals is the networks of issuance and support. Issuers' decisions can change supply lines overnight—for example, Circle stopped minting USDC on the TRON network, followed by Binance halting USDC deposits and withdrawals via TRON while maintaining trading across other networks. The lesson here: Don't just rely on the currency pair, but monitor the supported network for deposit/withdrawal, as it can affect the speed of settlement, conversion costs, and execution risks.
Conversely, FDUSD’s expansion across multiple networks (from BNB Smart Chain to Solana) reduces the friction of transfers and enhances flexibility in positioning in DeFi/CeFi alike, supporting arbitrage strategies, margin financing, and liquidity management across more than one ecosystem.
5) Liquidity and fees: How is the new “pricing anchor” shaped?
After BUSD, liquidity on Binance is distributed among USDT, USDC, FDUSD, and others. Practically, USDT remains the mainstay of global liquidity, but in Europe specifically, the “anchor” of pairs tends to shift to MiCA-compliant currencies like USDC, and outside Europe to FDUSD as a popular alternative in the Binance ecosystem. The platform adjusts these shifts through fee incentives, promotional offers, and temporary 1:1 conversions, reshaping the order depth and affecting the costs of entry and exit for the end user.
Operational advice: Monitor the official announcements on Binance about “commission-free” or “discounted fee” pairs, as they can clearly change the breakeven point of your strategy, especially in high-frequency trading or as an individual market maker.
6) Systemic risks and governance: What did we learn from 2023–2024?
The story of BUSD highlighted that the risks of the issuer and regulation could outweigh any minor deviation from the 1:1 peg. Also, recent European discussions raised the issue of “regulatory gap exploitability” in MiCA between issuances inside/outside the union, and the possibilities of regulatory arbitrage if liquidity obligations across borders are not settled. For a Binance user, this means scrutinizing disclosure documents (reserves, auditors, jurisdiction, redemption obligations) is no longer a luxury but a means to mitigate tail risks.
From a compliance angle, the ability of issuers to obtain licenses (as Circle did in France) gives users an additional layer of protection, but it does not eliminate the need to be mindful of geographical boundaries—you may enjoy broad trading flexibility outside Europe, while facing restrictions within it.
7) How should a trader and investor on Binance prepare for 2025–2026?
First: Segment your “stability” portfolio by region.
If you are trading within the European Economic Area, keep a significant portion of your reserves in MiCA-compliant stablecoins (like USDC/EURC) to ensure continuity in trading with the basic pairs available on Binance and minimize the risks of usage restrictions. Outside Europe, you can benefit from FDUSD or USDT depending on the liquidity depth and conversion costs.
Second: Manage your deposit and withdrawal network as a risk element.
Avoid reliance on a single network. Monitor issuers’ bulletins—like the USDC decision regarding TRON—as they may suddenly adjust your capital flow paths, and keep alternative network options ready to avoid an “emergent liquidity block.”
Third: Monitor temporary incentives.
“Zero commission” deals or “1:1 transfers” are typically used to steer liquidity toward a specific stablecoin. Exploiting these windows can reduce the cost of repositioning and give you an advantage over less alert traders.
Fourth: Engage a part of your liquidity in payment systems.
The emergence of “institutional” stablecoins like PYUSD, with yield programs and payment integrations, means that your use of stablecoins may exceed the role of “parking” between trades, to enter into billing and payment systems and financial services. This doesn’t suit everyone, but it's a trend worth cautiously trying in small proportions.
8) What does this scenario mean for Binance itself?
Strategically, Binance is moving towards a multipolar matrix of stablecoins instead of “one pivot currency,” with geographical allocation imposed by MiCA and other regulatory frameworks. The platform will likely continue to test a mix of:
Supporting licensed issuances in Europe (USDC/EURC).
Enhancing “systemic” alternatives within the Binance ecosystem like FDUSD.
Listing/integrating new institutional stablecoins if they achieve significant cash mass and viable payment functions (PYUSD as an example).
This diversity reduces exposure risks to a single issuer, but it transfers part of the selection burden to the user, requiring a higher personal compliance culture among traders and investors.
Conclusion: “Smart stability” is the theme of the stage
The future of stablecoins on Binance will not only be measured by how close the price is to 1.00, but by their compliance, network portability, liquidity depth, and integration with real use cases. For beginners, keep the rules simple: a licensed stablecoin where regulations require you, and high-liquidity alternatives otherwise, while being mindful of network warnings and fees. For professionals, make your stablecoin allocation a dynamic decision reviewed periodically according to Binance and issuers’ bulletins, and take advantage of fee differentials and phase incentives for less costly repositioning.
