Binance to stop its support for USDC, USDP, and TUSD from the end of September.
The existing funds of the coin will automatically convert these coins to BUSD.
The largest cryptocurrency exchange, Binance recently revealed that the platform will discontinue its support for the stablecoins such as USD Coin (USDC), Paxos Standard (USDP), and TrueUSD (TUSD). According to the announcement from the company, these tokens will be removed from the exchange at the end of September.
Binance revealed 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.
Binance Launches ‘BUSD Auto-Conversion’
To increase the liquidity and capital efficiency of its users, Binance introduced a new program, BUSD Auto-Conversion. As per the announcement, this conversion will automatically convert the existing and future USDC, USDP, and TUSD funds into the exchange’s native stablecoin, BUSD (Binance USD).
Following this, Binance CEO, Changpeng Zhao tweeted that it will be possible to withdraw funds from an account in USDC, USDP, and TUSD. But these tokens will no longer function as a stable currency of reference to do business in the cryptocurrency market.
However, the action taken by Binance seems to affect the second-largest stablecoin, USDC. This will also create a barrier for USDC to undertake Tether (USDT), the largest stablecoin in the crypto market. Also, the exchange’s latest strategy will not impact USDT, it will continue to trade on the Binance platform.
Moreover, as per CMC, the current market value of USDT is $67 billion, and USDC’s $51 billion. The BUSD has a market cap of $19.billion.