Binance will stop supporting USDC, the second largest stablecoin
Binance, the issuer of the world's third-largest stablecoin, announced on Monday that it will convert customer holdings into three rival stablecoins USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stablecoin (BUSD) on September 29 to "improve liquidity and capital efficiency for users" in a move that has baffled many enthusiasts.
Following the move, the world's largest crypto exchange said it will be eliminating spot, futures, and margin trading with USDC, USDP, and TUSD pairs.
"This will not affect users' choice of withdrawal: 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," said said Binance in a blog post. .
Issued by Circle – a $9 billion company that counts BlackRock, Fidelity, FTX, and Accel among its backers – USDC is the second-largest stablecoin with a market capitalization of over $50 billion. The stablecoin is used in transactions worth more than $5.5 billion per day, according to data from CoinMarketCap.
BUSD, Binance's stablecoin, currently has a market capitalization of $19.3 billion. Its daily trading volume jumped over 56% on the news to over $6.5 billion, according to CoinMarketCap.
"Based on market activity, it would appear that much of this transition has already passed and while maximizing dollar liquidity on the world's largest exchange may have benefits, the paradigm raises potential questions about market conduct,” a Circle spokesperson told TechCrunch.< /p>
Binance, the issuer of the world's third-largest stablecoin, announced on Monday that it will convert customer holdings into three rival stablecoins USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stablecoin (BUSD) on September 29 to "improve liquidity and capital efficiency for users" in a move that has baffled many enthusiasts.
Following the move, the world's largest crypto exchange said it will be eliminating spot, futures, and margin trading with USDC, USDP, and TUSD pairs.
"This will not affect users' choice of withdrawal: 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," said said Binance in a blog post. .
Issued by Circle – a $9 billion company that counts BlackRock, Fidelity, FTX, and Accel among its backers – USDC is the second-largest stablecoin with a market capitalization of over $50 billion. The stablecoin is used in transactions worth more than $5.5 billion per day, according to data from CoinMarketCap.
BUSD, Binance's stablecoin, currently has a market capitalization of $19.3 billion. Its daily trading volume jumped over 56% on the news to over $6.5 billion, according to CoinMarketCap.
"Based on market activity, it would appear that much of this transition has already passed and while maximizing dollar liquidity on the world's largest exchange may have benefits, the paradigm raises potential questions about market conduct,” a Circle spokesperson told TechCrunch.< /p>
What's Your Reaction?
