coinculture.com
Binance has started to support USD Coin (USDC) withdrawals after a temporary halt. Previously, the largest crypto trading platform by daily volume ceased processing USDC withdrawals owing to insufficient USDC reserves.
Nansen data indicates that the vast bulk of Binance’s stablecoin holdings, more than $11.5 billion, are Paxos-issued BUSD. To enhance its USDC reserves, the organisation attempted to exchange its BUSD holdings for USDC.
$USDC withdrawals are back online. Thank you for your patience.
— Binance (@binance) December 13, 2022
To exchange tokens for USDC, however, funds had to be routed via a New York bank that still needed to be operational, Zhao said. This impeded the exchange’s capacity to handle these transactions, so it briefly halted USDC withdrawals while it performed a token swap.
Users have been withdrawing substantial funds, including USDC and other stablecoins, from Binance. The Block’s director of analytics, Simon Cousaert, believes that since yesterday, Binance has experienced a net outflow of nearly $2 billion in various cryptocurrencies.
Binance asserts that its wallets contain more than $60 billion worth of assets.