As of September 29, 2022, the Binance platform will introduce the Automatic Stablecoin Conversion solution and will stop trading certain stablecoins.
Binance is a cryptocurrency trading platform that uses its own digital token: the Binance Coin or BNB. Today, the platform brings together investors from around the globe to trade hundreds of cryptocurrencies despite the regulatory actions it has undergone in 2021.
As a crypto exchange platform, Binance allows trading and quoting. Many investors and traders use it to make various exchanges and investments. At the same time, it offers crypto fundraising and withdrawal services.
Binance excludes its competitors USDC, USDP and TUSD?
The platform has just made a major upgrade. According to Binance’s statement yesterday, September 05, it will introduce “BUSD Auto-Conversion,” which will be used to convert all users’ existing balances and new deposits of USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stablecoin.
According to binance, the move is intended to improve liquidity and capital efficiency for users.
What does this mean in practical terms and how will this update impact users?
USDC, which is primarily operated by Circle Internet Financial and is the second largest stablecoin, has a market capitalization of nearly $51.9 billion. Binance’s stablecoin, BUSD, is valued at about $19.4 billion, according to crypto data provider CoinGecko.
Affected USDC products include savings accounts, DeFi staking subscriptions and crypto-loans, which will be closed and liquidated on Sept. 23.
According to the press release, this new option will make it easy to deposit and withdraw stablecoins such as USDC, USDP or TUSD and thus have better liquidity of BUSD on Binance.
In other words, the Binance platform has just excluded some of its main stablecoins competitors from its own ecosystem.