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Binance has announced that it will be removing the USDC stablecoin from the platform’s spot trading pairs list, along with two other stablecoins.
USDC, USDP, TUSD Delisted
The other stablecoins being delisted along with USDC are USDP and TUSD. Binance, the world’s largest crypto exchange by trading volume, announced the news via a statement released on Monday and claimed that the prime reason behind the decision is to enhance liquidity and capital-efficiency for users.
According to the statement, the delisting will come in effect from September 29, 3 AM (UTC), when existing user balances and new deposits of USDC, USDP, and TUSD stablecoins will be converted to Binance’s very own stablecoin, BUSD, as per a 1:1 ratio.
The statement reads,
“In order to enhance liquidity and capital-efficiency for users, Binance is introducing BUSD Auto- Conversion for users' existing balances and new deposits of USDC, USDP and TUSD stablecoins at a 1:1 ratio.”
Warnings To Users
The delisting of the USDC stablecoin will be across offerings on the Binance platform, including spot trading, futures trading, margin lending, Flexible Savings and DeFi Staking, Binance Liquid Swap, Binance Convert, Crypto Loans, Binance Pay, and Binance Gift Card.
The statement also specifies that after the conversion, users will be able to use the consolidated BUSD balance, which will be a summation of their BUSD, USDC, USDP, and TUSD stablecoins. Furthermore, the auto-conversion will also not affect users’ choice of withdrawals. The team has also warned users not to add positions during the conversion period, to specifically avoid any losses that may incur due to the conversion of funds. Plus, users have also been advised to transfer all USDC holdings from their Margin Wallet to their Spot Wallet and top up their margin balance before the given time of conversion.
Circle And USDC
The USDC is the second largest stablecoin in the world, with a market cap of over $50 billion and is issued by Circle, which has been in news lately for its decision to freeze sanctioned Tornado Cash wallets on its platforms. This decision has also resulted in the freezing of 75,000 USDC worth of funds. Previously in July 2022, the company had revealed a detailed reserve report, detailing that its USDC stablecoin was backed only by cash and short-term treasury bonds. Despite the FUD in the market surrounding stablecoins, USDC has been performing well in 2022, particularly due to its DeFi angle.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.