Binance ends support for USDC to promote BUSD

The largest cryptocurrency exchange announced on Monday it will automatically convert several stablecoins to its own stablecoin on September 29, 03:00 UTC.

Pixelized dollar banknote, stablecoin concept.

According to the official announcement, Binance will start converting all existing balances and new deposits of USD Coin (USDC), Pax Dollar (USDP), and True USD (TUSD) stablecoins into its BUSD stablecoin at a 1:1 ratio. The move is said to enhance liquidity and capital efficiency for users.

Moreover, Binance will remove support for all USDC, USDP, and TUSD trading products, including spot trading pairs, futures, and margin lending, effectively delisting the said stablecoins from its platform. The exchange will also cease offering USDC staking and will close the USDC/USDT liquidity pool.

“This will not affect users' choice of withdrawal: users will continue to be able to withdraw funds in USDC, USDP and TUSD at a 1:1 ratio to their BUSD denominated account balance,” Binance stated in the announcement.

Circle’s USDC is the second-largest stablecoin with a market capitalization of $51 billion, while Binance’s BUSD is a distant third with $19 billion. The largest stablecoin by market cap, Tether’s USDT, will remain accessible to users.

Binance, however, noted that it reserves the right to amend the list of stablecoins eligible for auto-conversion.