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Crypto exchange Binance to convert users’ USDC into own stablecoin Binance USD


World’s largest crypto exchange by volume Binance on Monday said that it will start converting any existing user balances and new deposits of USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into the company’s own stablecoin Binance USD. 

“In order to enhance liquidity and capital-efficiency for users, Binance is introducing BUSD Auto- Conversion for users’ existing balances and new deposits of USDC, USDP and TUSD stablecoins at a 1:1 ratio,” it said in a statement on Mondau.

Binance said that it will remove and cease any trading on spot pairs that include USDC, USDP and TUSD and it will start the conversion on September 29.

With effect from September 29, 2022 the exchange said that users will trade with a consolidated BUSD balance on the Binance Platform that reflects their balances of these four stablecoins (BUSD, USDC, USDP and TUSD) post conversion, adding that 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.

USDC, which is principally operated by Circle Internet Financial and is the second largest stablecoin, has a nearly $51.9 billion market capitalization. Binance’s stablecoin, BUSD, is valued at about $19.4 billion, according to crypto data provider CoinGecko.

USDC products affected include saving accounts, DeFi staking subscriptions and crypto loans, which will be closed and liquidated on September 23.

Binance is seeing a surge in clients due to rising inflation and a historically strong dollar that has depressed emerging market currencies, an executive told Reuters last month.

BNB Chain is a community-driven blockchain software system. Binance USD or BUSD is a 1:1 USD-backed stablecoin approved by the New York State Department of Financial Services (NYDFS) and issued in partnership with Paxos.

(With inputs from agencies)

 

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