Binance to convert users’ USD Coin into its own stablecoin

Binance to convert users’ USD Coin into its own stablecoin

A representation of cryptocurrency is seen in front of Binance logo in this illustration taken, March 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Register now for FREE unlimited access to Reuters.com

Sept 6 (Reuters) – Binance, the world’s largest crypto exchange, said on Monday it will automatically convert user balances and new deposits of the stablecoins USD Coin, Pax Dollar and True USD into its own stablecoin, Binance USD.

The move is intended to enhance liquidity and capital efficiency for users, Binance said in a statement.

Stablecoins are a type of cryptocurrency designed to maintain a constant value, for example through a 1:1 U.S. dollar peg. They play a crucial role in facilitating crypto trading, and allow traders to store idle crypto cash without converting it back into fiat currency. read more

Register now for FREE unlimited access to Reuters.com

Binance said it will stop trading on spot pairs which include USD Coin, Pax Dollar and True USD, although users will still be able to withdraw funds in the form of these stablecoins.

The conversion of users’ holdings will take place on Sept. 29, Binance said.

USD Coin (USDC) is issued by U.S. firm Circle and is the world’s second-largest stablecoin, with a market capitalisation of $51.8 billion, according to crypto data provider CoinGecko. Binance’s stablecoin (BUSD) is valued at about $19.4 billion, according to CoinGecko.

USDC products affected include saving accounts, DeFi staking subscriptions and crypto loans, which will be closed and liquidated on Sept. 23, Binance said.

“While optimizing dollar liquidity on the world’s largest exchange may carry benefits, the paradigm does raise potential market conduct questions,” a spokesperson for Circle said in emailed comments, without elaborating on what questions.

Jeremy Allaire, the CEO of Circle, said in a tweet that “converged dollar books on Binance … is a good thing. USDC utility just increased.”

In another tweet, Allaire said he predicts the move will lead to USD Coin and Binance USD gaining market share from the world’s largest stablecoin, Tether.

Register now for FREE unlimited access to Reuters.com

Reporting by Shivani Tanna in Bengaluru; Editing by Leslie Adler, Louise Heavens and Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.

Elizabeth Howcroft

Thomson Reuters

Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and the money driving “Web3”.

Source link

Related post

Is the Bitcoin Up App Best for Crypto Trading: Is It Legit or a Scam?

Is the Bitcoin Up App Best for Crypto Trading:…

Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Nakamoto conceived of Bitcoin as a currency used…
Kim Kardashian Fined For Cryptocurrency Promotion, Here’s What It Means For Crypto

Kim Kardashian Fined For Cryptocurrency Promotion, Here’s What It…

| Getty Images Key takeaways Kim Kardashian will pay a fine of $1.26 million for not disclosing to her Instagram followers…
Wisconsin to get $235M in federal funds for road, bridge projects | The Daily Reporter

Wisconsin to get $235M in federal funds for road,…

By: Ethan Duran October 3, 2022 2:51 pm Gov. Tony Evers and the Wisconsin Department of Transportation announced on Monday the…

Leave a Reply

Your email address will not be published.