Binance to Auto-Convert Several Stablecoins to BUSD
- Binance revealed that starting 29 September all existing balances and new deposits of USDC, USDP, and TUSD will be auto-converted into its own BUSD stablecoin.
- While Binance claimed the move was made to “enhance liquidity and capital-efficiency for users”, it will also expand the market share of BUSD, currently ranked third in market capitalization.
Binance CEO Changpeng Zhao. CoinDesk
Popular cryptocurrency exchange Binance is planning to stop trading support for USD Coin (USDC), Pax Dollar (USDP), and TrueUSD (TUSD) at the end of the month, the company said in a blog post on 5 September.
According to the announcement, the exchange intends to automatically convert all investments in the USDC, USDP, and TUSD stablecoins on the platform to its own Binance USD (BUSD) stablecoin. Starting 29 September, customers depositing these tokens to Binance will see them automatically convert to BUSD, though they will still have a choice when it comes to withdrawing stablecoins from the platform. Binance’s founder and CEO, Changpeng “CZ” Zhao, explained on Twitter:
Binance noted the decision was made in order to “enhance liquidity and capital-efficiency for users”, though it also signals a push from the world’s largest exchange by trade volume to expand the market share of its own stablecoin, which is currently ranked third in market capitalization.
The company warned users that the auto-conversion process will begin on 26 September — when stablecoin-to-stablecoin spot trading will be terminated — and finish on 29 September with the removal of stablecoin-to-crypto trading support. Binance also noted that the move will affect a number of services beyond its exchange, including staking, savings, liquidity swaps, and loans.
On the same day, Binance also revealed it will be pausing all deposits and withdrawals of Ether (ETH) and Wrapped Ether (wETH) on several supported networks starting 6 September. The suspension is scheduled to last until the Ethereum blockchain has transitioned into a proof-of-stake model, which is expected to happen sometime between 10 and 20 September.
- Users of Binance NFT can now use select blue-chip NFT collections as collateral to take out cryptocurrency loans.
- The platform will initially support only loans in ETH, and NFT collections Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles.
Shutterstock
- The crypto exchange blamed the issue on a decision made by its third party payments provider in Australia, noting that it is now looking for a new partner in the country.
- Binance Australia assured users that AUD withdrawals are still available, and that they can continue to buy and sell crypto using debit/credit cards and its P2P marketplace.
- The Binance NFT marketplace said it will soon expand its multichain ecosystem, and add support for Bitcoin Ordinals, which are also known as Bitcoin NFTs.
- The platform said it will allow users to purchase and trade Ordinals directly from their Binance accounts, bypassing the need to create a separate inscription wallet.