In a recent update, major cryptocurrency exchange Binance revealed its plan to discontinue support for XRP within its Multi-Assets Mode for futures trading. This change also includes the removal of TrueUSD (TUSD) as a margin asset. The move affects traders utilizing various digital assets as collateral on the platform’s USDⓈ-M Futures contracts.
The adjustment is set to take effect on May 28, 2024, starting at 06:00 AM UTC. Following this update, users will no longer be able to employ XRP or TUSD as margin within this trading mode. Binance has already started preparing for this shift by setting transfer limits for these assets to zero.
Understanding Multi-Assets Mode and the Recent Changes
Multi-Assets Mode is a feature on Binance Futures that enables traders to use a range of cryptocurrencies as margin when trading USDⓈ-M Futures contracts. Popular assets like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Cardano (ADA) continue to be supported even as XRP and TUSD are phased out.
The removal of these assets means users must manage existing holdings proactively. After the deadline, any remaining XRP or TUSD balances in USDⓈ-M Futures wallets will be automatically converted to USDT.
For XRP, the conversion rate will be based on its average price index against USDT between 05:00 and 06:00 UTC on May 28. TUSD will be converted at a fixed 1:1 ratio.
Action Steps for Affected Users
To avoid potential losses due to unfavourable conversion rates, users are strongly advised to convert their XRP and TUSD balances manually before the cutoff time. Binance also recommends refraining from opening new futures positions during the conversion window to minimize risks.
Traders should review their current positions and margin allocations to ensure a smooth transition ahead of the scheduled update.
Community Reaction and Speculation
The announcement sparked discussion within the XRP community. Prominent commentator WrathofKahneman expressed curiosity about the reasoning behind delisting an asset as significant as XRP, which ranks among the top cryptocurrencies by market capitalization.
Some community members speculate whether the decision anticipates higher volatility for XRP or reflects internal strategic considerations. Others wonder if Binance is making room for upcoming assets, such as Ripple’s planned stablecoin.
Despite the speculation, Binance has not publicly detailed its specific reasons for removing XRP and TUSD from Multi-Assets Mode. Market performance at the time of the announcement showed XRP trading around $0.4992, down 1.16% over 24 hours.
Frequently Asked Questions
What is Multi-Assets Mode on Binance?
Multi-Assets Mode allows traders on Binance Futures to use multiple cryptocurrencies—such as BTC, ETH, or BNB—as margin for their USDⓈ-M Futures contracts, providing greater flexibility in managing collateral.
Why is Binance removing XRP from Multi-Assets Mode?
While Binance has not provided explicit reasons, the change is part of a periodic review of supported assets. The exchange often adjusts its offerings based on liquidity, market demand, or risk management considerations.
What should I do if I hold XRP in my Futures wallet?
You should convert your XRP to USDT or another supported asset before May 28, 2024, to avoid automatic conversion at a rate that may not be favourable. 👉 Check supported margin assets
Will this affect spot trading or other XRP pairs?
No, this change only impacts the use of XRP as margin within Multi-Assets Mode for futures trading. Spot trading and other services involving XRP remain unaffected.
Can I still use other stablecoins in Multi-Assets Mode?
Yes, other stablecoins like USDT and USDC continue to be supported as margin assets within the mode.
Is this decision related to regulatory concerns?
There is no indication that regulatory issues prompted this change. It appears to be a routine update to Binance’s product offerings.
Note: This article is for informational purposes only and is not intended as financial advice. Always conduct your own research and consult with a professional before making investment decisions.