Binance To Delist USD Coin (USDC), And Convert USDP, TUSD Into Binance USD (BUSD)

Binance, the world’s largest cryptocurrency exchange, has shaken the stablecoin space after the platform announced that it will automatically convert USD Coin (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 Cardano (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

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).