Bloomberg News reports that Binance, which is by volume the largest crypto exchange, is expected to begin converting user balances that exist. The new deposits of Pax Dollar (USDP), USD Coin (USDC), and True USD (TUSD) will be converted into the company’s stablecoin. It was revealed in a statement that was published on Monday. The conversion has been scheduled for commencement on September 29th.
USDC, which the Circle Internet Financial issues are the stablecoin that ranks second on close heels after Tether. It has a market value of approximately $52 billion per data released by CoinGecko. BUSD, Binance’s stablecoin, is in the third position at $19. 3 billion but lagging quite behind.
The exchange stated that this move had been worked out so that liquidity and capital efficiency for the users could be enhanced. Binance will discontinue any spot pairs trading involving the TUSD, USDC, or USDP, as stated by the exchange in a statement.
A Bold Decision was Taken
According to Hagen Rooke, a partner in Singapore with the law firm Reed Smith LLP, the decision that has been taken is unprecedented and bold. It is smart for Binance because the company’s service offering will now increase and converge with the house’s BUSD product.
He also added that by adopting this decision, the users would not be left devoid materially or out of pocket. This is because stablecoins that are involved are meant to be pegged to the dollar. The conversion, however, may upset the users who wish to use their USDC or third-party stablecoins on those applications that support them specifically. This includes yield for generation on the more decentralized protocol, as Rooke stated.
The 3 stablecoins at the top, namely, Tether’s USDT, BUSD, and USDC, were found to be trading as of 9.53 am in Singapore at $1 on Tuesday, as per data obtained from CoinGecko.
The current Binance offered impacted USDC products, including the crypto loans. These will be closed and liquidated on September 23rd; the others include the USDC-denominated savings accounts, USDC/USDT liquidity pool, and the DeFi stakings.
