This Binance Announcement Affects XRP Traders

In a recent announcement, Binance, the world’s leading crypto exchange, revealed changes to its margin trading options. Effective May 28th, 2024, Binance will discontinue support for XRP and the stablecoin TrueUSD (TUSD) as margin assets within the Multi-Assets Mode.

This change signifies that users will no longer be able to utilize XRP or TUSD as collateral when opening leveraged positions on futures contracts. To facilitate a smooth transition, Binance has already set the transfer-in limit for  XRP and TUSD to zero within the Multi-Assets Mode.

Read Also: XRP Escrow Release Cut Continues: Ripple Releases 500M XRP and Locks Back 800M

Automatic Conversion and User Warning

Any remaining XRP and TUSD balances held in users’ futures wallets after May 28th will be automatically converted to Tether (USDT) at the prevailing market rate. Binance urges users to exercise caution during this conversion period.

They strongly advise against opening new futures positions using XRP or TUSD to avoid potential losses due to price fluctuations during the conversion process. Binance will not be held liable for any losses incurred under these circumstances.

XRP Price Remains Stable Despite Announcement

The announcement regarding the discontinuation of XRP and TUSD margin trading has had minimal impact on XRP’s price in the immediate aftermath. At the time of writing, XRP continues to trade around the $0.50 mark, reflecting a slight decline of approximately 4% over the past week.

Binance Recent Platform Updates

In the past few weeks, Binance has implemented a series of updates to its platform, which Times Tabloid reported. In April, it expanded its loanable asset selection on Binance Loans by introducing 18 new options, including popular meme coins Pepe (PEPE) and Dogelon (WIF).

Additionally, Binance Loans introduced perpetual contracts for ARB/USDC and NEO/USDC with leverage options reaching up to 50x. The FIL/USDC contract offers even higher leverage, reaching up to 75x.

Continuing their focus on expanding trading options, Binance also added XRP/JPY, SHIB/JPY, ADA/JPY, and SOL/JPY trading pairs on Binance Spot. Furthermore, they streamlined operations for Mexican users by introducing a direct trading pair between the Mexican Peso (MXN) and Tether (USDT).

Read Also: TUSD Announces New Domain Name While Continuing to be a Top Stablecoin with its Three Core Competencies

Most recently, Binance Loans incorporated Holo (HOT), Jito (JTO), Manta Network (MANTA), MANTRA (OM), NFPrompt (NFP), and Portal (PORTAL) as new loanable assets, further enhancing their lending and borrowing offerings.

While the discontinuation of XRP and TUSD margin trading may affect a specific user group, Binance’s recent platform updates demonstrate its commitment to expanding its cryptocurrency and service offerings.

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