Crypto Exchange Binance to Covert USDC Investments to BUSD

Starting September 29th, Binance will convert all investments made with USDC, USDP, and TUSD to its stablecoin BUSD.

Binance, the largest crypto exchange in terms of daily trading volumes, has dropped a bomb announcing that it will no longer support trading for USD Coin (USDC), Pax Dollar (USDP), and TrueUSD (TUSD).

According to the announcement shared on Binance’s blog, starting September 29th, Binance is set to convert all investments made in USDC, USDP, and TUSD to its Binance USD token. 

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The company calls it a “BUSD Auto-Conversion” initiative. In the blog post, the company noted that the decision to convert stablecoins to BUSD was made aiming to “enhance liquidity and capital efficiency for users.”

The USDC will be removed from Binance’s liquid swaps, staking, loans and savings. 

Binance highlighted that this change will not affect withdrawals from its platform, stating:  

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.

The Binance spokesperson highlighted that auto conversion is “not a temporary measure” and will continue after September 29th. 

On September 6th, in a now-deleted tweet, Binance CEO Changpeng Zhao (also known as CZ) claimed that the company won’t remove stablecoins from its listings but rather “just merging all liquidity into one pair.” Moreover, he highlighted that it will provide a better price and “lower slippage for users.” 

According to the data shared by Nansen CEO Alex Svanevik, Binance has been converting USDC to BUSD for quite some time now. At the beginning of August, Binance had around $2.8 billion worth of USDC. However, the data revealed that Binance currently has $1 billion worth of USDC.

In other news, on the same day, Binance announced halting deposits and withdrawals for Ether (ETH) and Wrapped Ether (WETH) until Ethereum Merge is fully completed. 

by Aaron S. – Expert Reviewer, BitDegree