Binance Closes USDC And Other Stablecoin Operations: Big Move To BUSDAdmin
- Binance Stops Trading With USDC And Two Other Stablecoins
- They automatically convert such balances to BUSD
- Read all the details of innovations
Binance released an important announcement. Starting September 29, they stop supporting USDC, USDP, and TUSD stablecoins. The exchange converts current balances in these currencies into its own stablecoin BUSD at the rate of 1:1. But clients will be able to withdraw USDC, USDP, and TUSD to their wallets further.
From September 29, these stablecoins will not be traded in pairs with BUSD and Tether (USDT) and with major cryptocurrencies (bitcoin, ether, etc.). The exchange will remove pending orders with these assets and offer trading pairs with BUSD. The same goes for other services – lending, leverage, staking, etc. USDC, USDP, and TUSD stablecoins will disappear from the entire Binance service system (Binance Pay service, gift cards, etc.).
The blog post states that such a move should “improve liquidity and capital efficiency for users.” But in fact, Binance prioritizes the use of its stablecoin. The crypto giant is planning to increase the market share of BUSD and is doing it in tough ways.
What the long-term implications for the USDC stablecoin will be is hard to say.
However, Wintermute CEO Evgeny Gaevoy sees no reason to panic in this.
He believes that it is more profitable not to divide liquidity between several stablecoins, but to allocate 1-2 assets for this. At the same time, USDC will retain its usefulness, because it will still be possible to deposit and withdraw it from Binance.