Updated · Sep 26, 2022
Binance to Drop USDC, Convert Users’ Coins to Its Stablecoin
Updated · Sep 07, 2022
Alongside the world’s second-largest stablecoin, Binance will also pull support for USDP and TUSD.
Binance, the world’s largest cryptocurrency exchange by trading volume, has issued a notice saying it will drop USD Coin (USDC) from its spot trading pairs list.
The new policy will also affect Pax Dollar (USDP) and True USD (TUSD). It will auto-convert all investments in the tokens into its own stablecoin, Binance USD (BUSD), starting from September 29. All new deposits of those tokens from that date will automatically convert to BUSD.
A stablecoin is a token that maintains a peg to a reference asset, such as fiat currency, an exchange-traded asset, or another cryptocurrency. Most of the top stablecoins serve as digital alternatives for the US Dollar.
Binance’s move effectively delists USDC, the second-largest stablecoin, from the platform. This will present a tough obstacle for the coin in the race to overtake USDT from its top-ranking perch. While the former has a market value of $52 billion, USDT is worth $68 billion. Binance’s native stablecoin, BUSD, trails in the third position with $19 billion in market cap.
The digital asset trading platform said the new policy would not affect the choice of withdrawals. USDC, USDP, and TUSD owners can still withdraw “at a 1:1 ratio to their BUSD-denominated account balance.”
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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