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.
- The digital ID project said Orb Operators received USDC payments as part of the project’s transitional phase after launch, and now that it is nearing its end Worldcoin will be switching to WLD payments.
- Worldcoin warned Orb Operators to check if they can claim rewards in their region as WLD are not available in the United States and “certain other restricted territories”.
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- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.