Binance, the world’s largest cryptocurrency exchange, has shaken the stablecoin space after the platform announced that it will automatically convert (USDC), Pax Dollar (USDP), and True USD (TUSD) into its own Binance USD (BUSD) stablecoin.
Binance to Stop Supporting Most Stablecoins
On Monday, September 5th, Binance announced that support for several leading stablecoins would cease, including for the second largest stablecoin on the market, the Circle-issued USD Coin (USDC). Other affected coins include the Pax Dollar (USDP) and TrueUSD (TUSD).
Binance announced that by Thursday, September 29th, all user funds in the aforementioned stablecoins will be automatically converted into the platform’s own BUSD.
The conversion will take place with the aid of the newly introduced “BUSD Auto-Conversion” system. Each of the stablecoins will be converted at a ratio of 1:1 to the BUSD.
Binance Turns off USDC Support
All USDC products on Binance, including saving accounts, Defi staking subscriptions, and crypto loans, will be closed and liquidated on September 23rd.
Binance stated that it will immediately eliminate and suspend all trading for pairs of USDC, USDP, and TUSD on September 29th. Until such time, users can still withdraw their funds in those respective stablecoins.
According to Binance, removing the stablecoins from the exchange will boost the liquidity and capital efficiency of its BUSD. Binance USD is currently ranked as the third largest stablecoin with a market cap of $19.47 billion at the time of writing, while USDC and USDT hold $51.8 and $67.6 billion, respectively.
On the Flipside
- Despite terminating support for USDC, Binance has confirmed that it will continue offering support for the world’s largest stablecoin, Tether’s USDT, until further notice.
Why You Should Care
By exiling the second-largest stablecoin from its platform, USDC, Binance hopes to improve the liquidity of BUSD, positioning it to potentially overtake Tether’s USDT.
Read about the new features Binance has launched for ADA:
Binance.US Launches (ADA) Staking Ahead of Vasil Upgrade
Binance is also looking to build a virtual city. find out more below:
Binance Enters Talks With Nigeria To Build A Digital City To Develop Blockchain
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