Binance To Auto-Convert USDC, USDP, TUSD To BUSD From Sept 29

Binance said on Monday, Sept 5, that it would no longer enable the usage of fiat-collateralised stablecoins $USDC, $USDP, and $TUSD for trading. Instead, existing user balances and new deposits will be automatically converted to $BUSD at 1:1.

According to Binance’s blog post on Sept 5, as of 2022-09-29 03:00 (UTC), users will trade with a consolidated $BUSD balance on Binance that reflects their balances of these four stablecoins ($BUSD, $USDC, $USDP, and $TUSD) following conversion.

#Binance to Auto-Convert $USDC, $USDP, $TUSD to #$BUSD (Binance USD).

— Binance (@binance) September 5, 2022

Binance states on the FAQ page for this new function that it has added the stablecoin Auto-Conversion solution to provide better trading liquidity and user experience.

The leading exchange by trading volume said that this would have no impact on the withdrawal options available to users: 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.

The following are the principal ramifications of this news for spot trading:

At 3:00 UTC, 2022-09-26, Binance will delete and suspend trading on the following spot trading pairs: $USDC/$BUSD, $TUSD/$BUSD, $USDC/$USDT, $USDP/$USDT, $USDP/$BUSD, and $TUSD/$USDT.

At 03:00 (UTC), 2022-09-29, Binance will remove and halt trading on the following spot trading pairs: ADA/$USDC, ATOM/$USDC, AUD/$USDC, ETH/$USDC, BTTC/$USDC, EOS/$USDC, BCH/$USDC, $BTC/$TUSD, $BTC/$USDC, $BNB/$USDC, LINK/$USDC, LTC/$USDC, SOL/$USDC, TRX/$USDC, $XRP/$USDC, ZEC/$USDC, $XRP/$USDC, WIN/$USDC, and $BNB/$USDP.

Once the conversion is complete, users can check their $USDC, $USDP, and $TUSD amounts under the $BUSD-denominated account balance.

All pending trade orders will be deleted immediately after trading finishes for each trading pair. The assets can then be traded using the corresponding $BUSD trading pairs.

CoinDesk anticipates the following effects of this news on the stablecoin market:

The ruling essentially removes the second-largest stablecoin, $USDC, from one of the most prominent positions in crypto, building a barrier to surpassing Tether ($USDT) as the largest stablecoin. The 68 billion dollar market value of $USDT surpasses the 52 billion dollar market value of $USDC, with $BUSD in third place at 19 billion dollars. $USDP and $TUSD are significantly smaller.