- Binance exchange disclosed that it’s ending support for USDC and a host of other stablecoins this month
- The move is in favour of the exchange’s own stablecoin, Binance USD (BUSD)
- Binance users have until September 29th before the platform automatically converts specified stablecoins into BUSD
Binance, the leading cryptocurrency exchange by trading volume, has disclosed that it will no longer support Circle’s USD Coin (USDC) as well as several other stablecoins. As of September 29th, unsupported coins on the platform will be auto-converted to the platform’s own stablecoin, BUSD, although Binance will allow withdrawals in unsupported stablecoins.
USDC, TUSD, and USDP Deposits Auto-Changed to BUSD
In an announcement yesterday, the exchange highlighted USDC, TrueUSD (TUSD), and Pax Dollar (USDP) as the stablecoins marked for discontinuation. After the said date, deposits involving these coins will be auto-changed into BUSD, with Binance giving the reason as a bid to “enhance liquidity and capital-efficiency for users”.
The exchange will however offer these coins during a withdrawal operation even after September 29th. On September 26th, Binance will stop supporting trading pairs involving the three stablecoins. Open orders with these coins will also be closed. Other Binance services affected by the move include futures, margin, saving & staking, USDC/USDT liquidity pool, loans, Binance Pay, and Binance Gift Card.
USDC is the Second-largest Stablecoin
Although USDP and TUSD have significantly lower market caps, USDC is the second largest stablecoin after Tether (USDT) but is rapidly catching it up. According to Coinmarketcap, USDT has a market capitalization of 67.55 Billion USD followed by USDC with 51.79 Billion USD, and BUSD occupies position three with 19.46 Billion USD. Binance’s move greatly lowers USDC’s chances to overthrow USDT’s lead.
The news comes in the wake of MakerDAO co-founder Rune Christensen suggesting that USDC should be kicked from the collateral behind the popular DAI stablecoin, suggesting that USDC may be swiftly falling out of favour.