I looked everywhere for an answer and finally this worked for me:
SELECT Lower(Substring(MASTER.dbo.Fn_varbintohexstr(0x21232F297A57A5A743894A0E4A801FC3), 3, 8000))
Outputs to (string):
21232f297a57a5a743894a0e4a801fc3
You can use it in your WHERE or JOIN conditions as well in case you want to compare/match varbinary records with strings