Following its most recent periodic review, Binance is getting ready to remove Pax Dollar (USDP) from its platform because the stablecoin did not meet the exchange's requirements. All USDP spot trading pairs will stop trading on September 24, 2026, at 03:00 UTC, according to Binance.
Spot orders are being cancelled
Spot orders that are already in place will be automatically canceled after trading stops. The decision is noteworthy because USDP, a dollar-pegged stablecoin issued by Paxos, has traditionally functioned as one of the stablecoin industry's regulated alternatives.
Souce: CoinMarketCap
Binance did not pinpoint a single infraction that led to the ruling. Rather, the exchange restated the factors it considers when reviewing listings, such as trading volume and liquidity, development activity, network security, legal requirements, transparency of projects, tokenomics, and community sentiment.
The removal will go far beyond trading on the spot market. On September 11, at 06:00 UTC, Binance Margin is set to delist USDP; however, Binance Buy and Sell Crypto will cease to support the asset a few hours earlier. The remaining positions will be automatically redeemed and moved to users' Spot Accounts after Simple Earn support expires on September 17.
Withdrawals and deposits are the most crucial deadlines. Standard withdrawals are still accessible until November 24, at 03:00 UTC, but USDP deposits will no longer be credited after September 25, at 03:00 UTC.
Will USD reserves be converted？
Additionally, Binance stated that after November 25, users' remaining USDP balances might eventually be converted into stablecoins. Nevertheless, the exchange made it clear that this kind of conversion is not guaranteed. Withdrawals might still be possible if conversion is not possible, depending on network conditions.
The delisting by itself does not mean that Paxos has ceased to support the stablecoin or that USDP has lost its dollar backing. It reflects Binance's choice to stop providing support in accordance with its internal listing guidelines.
Losing Binance distribution is significant, though. Liquidity, exchange integrations, and easy conversion paths are critical components of stablecoins. Removing USDP from one of the biggest trading platforms in the sector makes it less accessible and may further concentrate stablecoin activity around more popular alternatives like USDT and USDC.
