The largest cryptocurrency exchange will consolidate all competing assets into its native Binance stablecoin. Binance, the largest cryptocurrency exchange in the world by volume, today announced it would start auto-converting existing and future deposits of USDC and USDP stablecoins to its native BUSD.
According to the company, this move will increase liquidity and capital efficiency for its users.
According to CoinMarketCap, USDC is second in market capital among stablecoins at \$51 billion. Binance’s BUSD stablecoin, which has a market cap \$19 billion, is third. This is less than half the USDC. Binance’s 28million users will now have direct custody of USDC, USDP, and TUSD.
The move has delisted the stablecoins in reality
Binance stated in support that users won’t be restricted in their withdrawal options. Users will still be able withdraw funds in USDC and USDP at a 1:1 ratio with their BUSD account balance.
The exchange states that users will be able see their converted balance within 24 hours. Lower balance accounts automatically convert to BUSD.
Binance claims it could amend the list of stablecoins that are eligible for auto-conversion.
Some people were skeptical about Binance’s decision, noting that the move converts rival stablecoins to Binance’s.
Binance will take $USDC from tradable assets by Sep 25, to push their $BUSD Crypto monopoly 101. Tweeted @BloodgoodBTC “Binance is deleting competitors as Google did 10 years back.”
The company also announced additional changes, including the elimination of support for USDC and USDP products and TUSD products. This includes spot trading and futures.
Tether (USDT), the largest stablecoin has a market capital of \$67 billion. It will continue to be accessible on Binance.