On September 6, the crypto exchange shocked the market by announcing that it would discontinue trading support for USD Coin (USDC), USDP Stablecoin (USDP), and TrueUSD on its platform (TUSD).

On September 29, any users still holding the three stablecoins will have their assets auto-converted to BUSD at a 1:1 ratio over 24 hours.

Binance stated that the decision was made to improve users' capital and liquidity efficiency but did not mention Tether USDT, the largest stablecoin by market cap.

Their spokesperson confirmed that there are no current plans to do the same with USDT, but this could change, stating, "At the moment, we have no plans to auto-convert USDT to BUSD, but this may change."

The spokesperson also revealed that the auto-conversion and decision to discontinue most USDC trading services are not a temporary measure and will continue.

CEO Changpeng Zhao (CZ) clarified in a Sept. 6 tweet that the company is just combining all liquidity into one pair, adding that it will provide the best price and lowest slippage for users.

Binance will also discontinue the long list of spot trading investment pairs that are linked to these stablecoins, with the pairings shifting primarily to BUSD.

Users should also keep an eye out for using USDC in the exchange's staking, savings, liquid swaps, and loans because those services will also be discontinued.

This move coincides with a suspension of Ether (ETH) and Wrapped ETH (WETH) withdrawals and deposits from September 6 until the Ethereum Merge occurs later this month.

According to Nansen data, Binance has been progressively converting USDC to BUSD since mid-August, with approximately $1.5 billion switching over during that time, according to the analytics platform's CEO Alex Svanevik.

Binance currently has less than $1 billion in USDC on its platform, with about $993.3 million at the time of writing. The platform holds $4.9 billion USDT, more significant than any other global exchange.

Posted 
Sep 6, 2022
 in 
Crypto News
 category

More from 

Crypto News

 category

View All

Join Our Newsletter and Get the Latest
Posts to Your Inbox

No spam ever. Read our Privacy Policy
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.