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Binance, the world's largest cryptocurrency exchange by volume, announced today that it would begin auto-converting existing and new deposits of $USDC, $USDP, and $TUSD stablecoins into its native $BUSD—effectively delisting three rival stablecoins.
The company says the move will enhance liquidity and capital efficiency for users.
Among stablecoins, $USDC is the second largest by market cap at $51 billion, according to CoinMarketCap. Binance’s $BUSD stablecoin is a distant third, with a market cap of $19 billion—less than half that of $USDC. This move effectively removes direct custody of $USDC (and $USDP and $TUSD) for Binance’s 28 million users.
"This will not affect users' choice of withdrawal: users will continue to be able to withdraw funds in $USDC, $USDP, and $TUSD at a 1:1 ratio to their $BUSD denominated account balance," Binance said in a support post announcing the change, adding that the change is set to take effect on September 29.
#Binance to Auto-Convert $USDC, $USDP, $TUSD to #$BUSD (Binance USD).
— Binance (@binance) September 5, 2022
Users will be able to see the converted balance on their accounts within 24 hours, the exchange says, adding that the minimum amount for manual conversion is 1 $USDC, $USDP, or $TUSD. Accounts with lower balances auto-convert to $BUSD.
Binance says it may amend the list of stablecoins eligible for auto-conversion.
The news of Binance's decision was met with some skepticism, noting the move converts rival stablecoins into Binance's own.
"Crypto monopoly 101, Binance will remove $USDC as a tradable asset by Sep 25 to push their $BUSD." wrote @BloodgoodBTC on Twitter. "Binance is deleting competitors like Google did 10 years ago."
Crypto monopoly 101
Binance will remove $USDC as a tradable asset by Sep 25 to push their $BUSD.
They also hired ex Brazilian central Bank President as advisor, because bankster connections matters. For regulations.
Binance is deleting competitors like Google did 10 years ago.
— Bloodgood (@bloodgoodBTC) September 5, 2022
Additional changes announced by the company include the removal of support for $USDC, $USDP, and $TUSD products, including spot trading, futures, and margin lending.
The largest stablecoin, Tether (USDT), has a market cap of $67 billion and will remain accessible on Binance.