Binance stops supporting USDC and several other stablecoins

The cryptocurrency exchange Binance has stopped supporting competitive stablecoins, including USDC. After the announcement, the outflow of USDC from the crypto exchange increased by 93%, and its capitalization fell by 5%. According to the analytical company Nansen, Binance had $ 26 billion worth of stablecoins yesterday. Of this amount, $ 20 billion was in BUSD, and the rest was in competitive stablecoins: more than $ 5 billion in Tether (USDT), $ 683 million in USDC, $ 48 million in USDP, and $ 283 million in TUSD.

Starting tomorrow, the exchange will automatically convert any remaining USDC, USDP, and TUSD balances to BUSD. «This will not affect withdrawal choices, users can still withdraw savings in USDC, USDP, and TUSD at a 1:1 ratio to the account balance converted to BUSD,» Binance emphasized.

Back in early September, the cryptocurrency exchange warned users about changes in its ecosystem. They will affect almost all functions and services of the platform, namely

• spot trading — support for currency pairs such as USDC/BUSD, USDC/USDT, USDP/BUSD will be discontinued
• cryptocurrency loans
• support for lending based on USDC, USDP, and TUSD stablecoins will be discontinued
• flexible Savings and DeFi Staking settings based on USDC will no longer be supported
• Liquid Swap — USDC/USDT pool will be closed, coins will be transferred to spot wallets
• Binance Pay
• Binance Gift Card

Binance representatives also noted that in the future, they may change the list of stablecoins subject to automatic conversion.