Binance will stop supporting USDC and some other stablecoins

Starting September 29, cryptocurrency exchange Binance will automatically convert USDC, USDP, and TUSD stablecoins on users' accounts into BUSD. The company says that this step will increase liquidity and capital efficiency for users. USDC ranks second in terms of market capitalization, which is $ 51 billion. Binance’s stablecoin BUSD ranks third with a market capitalization of $ 19 billion.

#Binance to Auto-Convert $USDC, $USDP, $TUSD to #BUSD (Binance USD).

— Binance (@binance) September 5, 2022

«To improve liquidity and financial efficiency, Binance is introducing auto-conversion for existing user balances and new deposits in USDC, USDP, and TUSD at a 1:1 ratio,» the exchange representatives said.

According to Binance, users will start «trading with a consolidated BUSD balance sheet» that will show their assets in four stablecoins. «This will not affect the choice of withdrawals, users can still withdraw savings in USDC, USDP, and TUSD at a ratio of 1:1 to the account balance converted to BUSD,» Binance emphasized.

The changes 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.

Representatives of the exchange noted that in the future, they may change the list of stablecoins subject to automatic conversion.