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- Binance to stop its support for $USDC, $USDP, and $TUSD from the end of September.
- The existing funds of the coin will automatically convert these coins to $BUSD.
The largest cryptocurrency exchange, Binance recently revealed that the platform will discontinue its support for the stablecoins such as USD Coin ($USDC), Paxos Standard ($USDP), and TrueUSD ($TUSD). According to the announcement from the company, these tokens will be removed from the exchange at the end of September.
Binance revealed that:
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 $BUSD denominated account balance.
Binance Launches ‘$BUSD Auto-Conversion’
To increase the liquidity and capital efficiency of its users, Binance introduced a new program, $BUSD Auto-Conversion. As per the announcement, this conversion will automatically convert the existing and future $USDC, $USDP, and $TUSD funds into the exchange’s native stablecoin, $BUSD (Binance USD).
Following this, Binance CEO, Changpeng Zhao tweeted that it will be possible to withdraw funds from an account in $USDC, $USDP, and $TUSD. But these tokens will no longer function as a stable currency of reference to do business in the cryptocurrency market.
However, the action taken by Binance seems to affect the second-largest stablecoin, $USDC. This will also create a barrier for $USDC to undertake Tether ($USDT), the largest stablecoin in the crypto market. Also, the exchange’s latest strategy will not impact $USDT, it will continue to trade on the Binance platform.
Moreover, as per CMC, the current market value of $USDT is $67 billion, and $USDC’s $51 billion. The $BUSD has a market cap of $19.billion.
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