Binance, the leading cryptocurrency exchange in the world by volume, announced on Sept 5th, that it will discontinue support and start automatically converting new and existing deposits of USDC, USDP, and TUSD stablecoins into its own BUSD. This would remove three rival stablecoins from Binance’s list of available coins.
The company says the change will make it easier for users to get cash and use capital.
According to CoinMarketCap, USDC is the second largest stablecoin by market cap, with $51 billion. The third-place stablecoin, BUSD from Binance, has a market cap of only $19 billion, which is less than half that of USDC. With this change, Binance’s 28 million users no longer have direct control over their USDC, USDP, and TUSD.
“This will not change how users can withdraw funds: users will still 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. The change will go into effect on September 29.
The exchange says that users will be able to see their converted balances on their accounts within 24 hours. For manual conversions, the minimum amount is 1 USDC, USDP, or TUSD. Accounts with less money in them are automatically changed to BUSD.
Binance says it might change the list of stablecoins that can be automatically changed.
Some people were skeptical when they heard about Binance’s decision since the move would turn rival stablecoins into Binance’s own.
The company also said that it would stop supporting USDC, USDP, and TUSD products, such as spot trading, futures, and margin lending.
Tether (USDT), the largest stable coin, has a market cap of $67 billion and will still be available on Binance.
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