Binance will be converting all customer holdings from USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stablecoin (BUSD), the world’s third-largest, on September 29th to “enhance liquidity and capital-efficiency for users.” The exchange will also remove spot, future, and margin trading with USDC, USDP and TUSD pairs.
In a blog post, the exchange said: “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.”
Issued by Circle, USDC is the second-largest stablecoin with a market cap of over $50 billion. The stablecoin is used in transactions worth over $5.5 billion a day, according to data from CoinMarketCap.
In comparison, BUSD currently has a market cap of $19.3 billion, and its daily volume trades jumped over 56% to exceed $6.5 billion.
In a statement to TechCrunch, Circle opposes the move. A spokesperson said: “Based on market activity, it would seem much of this transition has already passed and while optimizing dollar liquidity on the world’s largest exchange may carry benefits, the paradigm does raise potential market conduct questions.”
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