Binance, the world’s largest crypto exchange by volume, announced that it will stop supporting the stablecoin USD Coin (USDC) in the near future. Binance USD was created by Binance as a stablecoin pegged to the US dollar so the exchange decided to delist USDC as the way to back their stablecoin.
In its announcement, Binance said that it plans to auto-convert customer’s USDC balances to BUSD from Sep 29. The same goes for the two smaller stablecoins, Pax Dollar (USDP) and TrueUSD (TUSD). The stablecoins will be converted at a 1:1 ratio and balances will automatically show a consolidated BUSD balance. The automatic conversion will improve liquidity and capital efficiency for users. It should be noted that users can still withdraw funds in USDC, USDP and TUSD at a 1:1 ratio from their consolidated BUSD balance.
USDC is currently the 2nd largest stablecoin in the world after Tether (USDT). Being delisted from one of the biggest major exchanges has made this coin somewhat lose its advantage in the race to become the largest stablecoin in the market. This must have been a shock to Circle Internet Financial – the issuer of USDC, especially when Circle IPO is preparing to go public.
Stablecoins are an important part of the crypto market, acting as a digital version of the US dollar. USDT is the largest stablecoin today, holding up to 44% of the market share. Meanwhile, BUSD is temporarily ranked 3rd in the market with a market capitalization of 19.5 billion USD, TUSD and USDP respectively hold the 5th and 6th positions with a market capitalization of 1 billion USD and 945 million USD.
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