Binance has announced that it will remove USD Coin (USDC), TrueUSD (TUSD), and Paxos Standard (USDP) from its platform and convert its users’ balances in these stablecoins to Binance USD (BUSD) by September 29. The move, according to Binance, is intended to improve liquidity and capital efficiency for its users.
Users can manually convert their holdings in these stablecoins to BUSD, according to the Changpeng Zhao-led exchange. They cannot, however, convert from BUSD to the affected stablecoins. Users of Binance would also be unable to use USDC as a margin asset for futures trades.
USDC is also no longer available in its other products such as Savings & Stakings, Binance Pay, Crypto Loans, Gift Cards, and others.
Binance CEO Changpeng Zhao clarified in a tweet that USDC would not be delisted and that users would still be able to deposit and withdraw USDC.
Not delist. You can still deposit and withdraw USDC. Just merging all liquidity into one pair. Best price, lowest slippage for users.
— CZ ???? BNB (@cz_binance) September 5, 2022
According to previous CryptoSlate research, an average of $1 billion USDC left Binance’s USDC hot wallets during the week of August 29. With a market cap of $52 billion, USDC is the second-largest stablecoin in the crypto space.
With a market cap of $19.5 billion, the Binance-backed stablecoin is ranked third, while TUSD is ranked fifth with a market cap of $1 billion. USDP is ranked sixth, with a market capitalization of $945 million.
Tether’s USDT is the dominant stablecoin in the space, with a market cap of $67 billion and accounting for more than 80% of the industry’s trading volume.
USDC was recently chastised by crypto stakeholders for blocking wallets that had interacted with Tornado Cash due to US sanctions.
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