This Binance Announcement Will Affect Ripple (XRP) Traders: Details

TL;DR

• Binance will discontinue support for Ripple’s XRP and TUSD as margin assets, automatically converting any balances to USDT.
• XRP’s price remained stable around $0.50, showing little change despite the news.

The Latest Update

The world’s largest cryptocurrency exchange disclosed that it will discontinue support for Ripple’s XRP and the stablecoin TUSD as margin assets in the Multi-Assets Mode. Additionally, the transfer-in limit for these tokens was updated to zero.

The changes will officially take effect on May 28, and any remaining XRP and TUSD balances in futures wallets will be automatically converted to USDT. 

“Users are strongly advised not to add any new futures positions during the conversion period for XRP and TUSD to USDT to avoid any potential losses. Binance will not be liable for any losses for new positions during this period that may incur due to the conversion of funds,” the company warned.

Meanwhile, XRP recorded little-to-no volatility in the hours after the announcement. It continues hovering around the $0.50 mark, which is a 5% decline on a weekly scale. 

Binance’s Previous Amendments

The firm has introduced multiple updates on its platform in the last several weeks. In April, it added 18 new loanable assets, such as the popular meme coins Pepe (PEPE) and dogwifhat (WIF), on Binance Loans. It also launched the ARB/USDC and NEO/USDC perpetual contracts with up to 50x leverage, while FIL/USDC enables up to 75x leverage.

Shortly after, Binance included the XRP/JPY, SHIB/JPY, ADA/JPY, and SOL/JPY trading pairs on Binance Spot and simplified operations for Mexican users by introducing a direct pair between USDT and MXN.

Earlier this month, it added Holo (HOT), Jito (JTO), Manta Network (MANTA), MANTRA (OM), NFPrompt (NFP), and Portal (PORTAL) as new loanable assets on Binance Loans.