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Binance To Stop Supporting USDC, 2 Others Starting September 29

Photo for the Article - Binance To Stop Supporting USDC, 2 Others Starting September 29

Cryptocurrency exchange giant Binance is set to remove three stablecoins on its platform starting on September 29, 2022, namely: USD Coin (USDC), Pax Dollar (USDP), and True USD (TUSD); the exchange announced yesterday.

In a statement, Binance assured that it will help the users that are currently holding the three stablecoins to convert their coins to Binance USD (BUSD), the exchange’s own stablecoin, in a 1:1 conversion ratio.

“Existing USDC, USDP and TUSD balances in user accounts will be automatically converted to BUSD at 2022-09-29 03:00 (UTC) (‘Auto-Conversion’). All users will be able to see the converted balance on their accounts within 24 hours,” the statement read. 

Binance USD (BUSD) is the platform’s stablecoin pegged 1:1 to the US Dollar (USD); it is launched in partnership with Paxos Trust Company, a regulated financial institution that digitizes assets. 

Currently, BUSD is the third Biggest Stablecoin in the world in terms of market cap, the first is Tether (USDT) while USDC–the one Binance just removed– is in the second, according to the data of Coin Market Cap.  TUSD and USDP rank fifth and sixth with market caps of $1 billion and $945 million, respectively. (Read more: Binance is Launching a Dollar-Backed Stablecoin)

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While others see the exchanges move as Binance going after a stablecoin rival, the founder and the Chief Executive Officer (CEO) of global algorithmic market maker Wintermute Evgeny Gaevoy stated that most headlines about the news are misleading.

According to him, removing most stablecoin pairs is a good thing as “liquidity doesn’t have to be split between multiple stablecoins, making market makers’ job easier and markets overall more liquid.”

“It’s not USDC ‘delisting’, it’s another big step towards tether losing ground to US-native stablecoins,” he concluded.

Stablecoins are cryptocurrencies pegged on a 1:1 ratio with a fiat or real life currency. (Read more: [Guide] Stablecoins 101 | Introduction to Stablecoins)

Recently, Binance signed a Memorandum of Understanding (MoU) with the City of Busan, South Korea to aid the city in creating infrastructures and provide the technology to develop its own blockchain ecosystem. (Read more: Busan Plans to be a Global Digital Financial Hub, Partners with Binance)

In the Philippines, the crypto exchange promised to aid the country’s universities to offer courses and professional certificates in blockchain, crypto, and web3. (Read more: Binance Participates in Senate Hearing)

This article is published on BitPinas: Binance To Stop Supporting USDC, 2 Others Starting September 29

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.