Binance, the leading global cryptocurrency exchange, announced that it will delist three rival stablecoins USDC, USDP and TUSD, and will automatically convert the balance and new recharge of the above tokens into its own stablecoin BUSD .
Binance said the move is to improve liquidity and capital efficiency for users, but at the same time, it also effectively eliminates the direct custody of USDC, USDP and TUSD by Binance’s 28 million users, even the contracts, leverage of these stablecoins , liquidity mining and pledged lending and other products will also be closed.
Specifically, Binance will delist USDC, USDP and TUSD spot trading pairs against multiple cryptocurrencies in batches on September 26 and September 29, Taiwan time, while the balance of USDC, USDP and TUSD held by users It will be automatically converted into BUSD at a ratio of 1:1 at 11:00 on September 29.
In announcing the change, Binance said, “This will not affect users’ withdrawal options: users can withdraw their USDC, USDP and TUSD assets at a 1:1 ratio at any time with BUSD-denominated assets.”
All users can view the converted balance of their accounts within 24 hours, the exchange said , adding that the minimum amount for manual conversion is 1 USDC, USDP or TUSD, so accounts with lower balances do not need to take any action and the asset will be automatically converted to BUSD.
Binance said that the list of cryptocurrencies eligible for automatic conversion may be revised in the future based on market changes. In the future, after these three stablecoins are deposited into Binance, they will also be automatically converted into BUSD.
Binance’s decision was questioned by the cryptocurrency community. Some netizens pointed out on Twitter, “Cryptocurrency monopoly 101, Binance will cancel USDC as a tradable asset to promote their BUSD”, “Binance Just like Google 10 years ago, trying to get rid of the competition.”
However, Jeremy Allaire, CEO of USDC issuer Circle, does not think so. He tweeted earlier that Binance’s strategy has precedents on FTX and Coinbase, and it is actually a good thing for USDC, Because this helps BUSD and USDC share the market share of USDT.
According to data from CoinMarketCap, USDC is currently the second largest stablecoin with a market value of about $51 billion; while Binance’s BUSD ranks third with a market value of $19 billion, less than half that of USDC. As for stablecoin leader Tether (USDT), the market cap is $67 billion and is still available on Binance.