In order to "improve liquidity and capital-efficiency for customers," Binance has announced a "BUSD Auto-Conversion" that will start on September 29 and would prioritise its own stablecoin, BUSD, over a number of others on its cryptocurrency exchange. Binance is offering the 1:1 conversion of USDC, USDP, and TUSD stablecoins for both existing user balances and new deposits. The USDC/USDT combination ranks 11th among the top trading pairs by volume, and USDC is the second-largest stablecoin by total supply, making the shift noteworthy for the exchange.
"Users will be able to trade using a consolidated BUSD balance on the Binance Platform as of 2022-09-29 03:00 (UTC) that reflects their balances in these four stablecoins (BUSD, USDC, USDP, and TUSD) after conversion. Users will still be able to withdraw money in USDC, USDP, and TUSD at a 1:1 ratio to their BUSD-denominated account balance, thus this won't change their withdrawal options "The business stated.
Additionally, Binance will stop trading the three stablecoins against the USDT, BUSD, and other significant cryptocurrencies like Bitcoin and Ether. On September 26, the stablecoin-to-stablecoin pairs will close, and on September 29, the stablecoin-to-crypto pairs.
"Following the end of trading for each individual trading pair, all open trade orders will be immediately closed. After then, users can trade the corresponding BUSD trading pairs' assets "Binance declared. The stated adjustments affect a number of Binance services outside of its exchange, such as its gift card, payment, and staking options.
In a tweet, CEO Changpeng Zhao made it clear that Binance was not delisting USDC and that customers could still deposit and withdraw the currency.
With a $52 billion market cap, USDC is the second-largest stablecoin in the cryptocurrency world. TUSD is rated fifth with a market cap of $1 billion, while the Binance-backed stablecoin is ranked third with a market cap of $19.5 billion (approximately Rs. 150 crore). With a $945 million market cap, USDP is sixth.
With a market cap of $67 billion (approximately Rs. 5,35,140 crore), Tether's USDT dominates the stablecoin market and accounts for more than 80% of trade volume.
