Breaking: Binance to Stop Supporting Rival Stablecoins in Favor of BUSD from Sep 29
- According to Binance, the move is geared toward enhancing liquidity and capital efficiency for its users.
- Following the announcement, Binance will cease supporting spot trading pairs for the affected stablecoins by the end of this month.
- The company has announced that it will cease supporting futures, margin lending, liquid swap, savings, staking, Binance pay, crypto loans, and Binance gift cards for the affected stablecoins.
Leading cryptocurrency exchange by daily traded volume, Binance has announced that it will stop supporting rival stablecoins on its platform in favor of BUSD. According to the announcement, the crypto company will effect the changes on September 29, 2022, 03:00 UTC.
Although users can manually convert their stablecoins to BUSD beforehand, the Binance platform will auto-convert the assets in a ratio of 1:1 at the end of this month.
“Users will trade with a consolidated BUSD balance on the Binance Platform that reflects their balances of these four stablecoins (BUSD, USDC, USDP, and TUSD) post-conversion,” the company noted.
Worth noting, that Binance customers will still have a choice to withdraw stablecoins of their choice to external wallets. Additionally, the company announced that deposits from the various stablecoins will be supported. However, the stablecoins will be auto-converted to BUSD as soon as the deposit is successful.
According to the trading platform, the move is geared toward enhancing liquidity and capital efficiency for its users.
Binance Creates More Utility for BUSD
Following the announcement, the company will cease supporting spot trading pairs for the affected stablecoins by the end of this month.
Some of the affected trading pairs include:
ADA/USDC, ATOM/USDC, AUD/USDC, BCH/USDC, BNB/USDC, BTC/USDC, BTTC/USDC, EOS/USDC, ETH/USDC, LINK/USDC, LTC/USDC, SOL/USDC, TRX/USDC, WIN/USDC, XRP/USDC, ZEC/USDC, BNB/USDP, BTC/USDP, ETH/USDP, ADA/TUSD, BNB/TUSD, BTC/TUSD, ETH/TUSD, TRX/TUSD, and XRP/TUSD.
Notably, the company has announced that it will cease supporting futures, margin lending, liquid swap, savings, staking, Binance pay, crypto loans, and Binance gift card for the affected stablecoins. However, company’s customers will continue to access manual swaps for the stablecoins of choice.
According to the company’s website, the trading platform has over 90 million registered users from around the world. Additionally, the company reported today’s 24-hour trading volume at around $76 billion.
Following the announcement, the BUSD stablecoin is expected to gain more traction around the cryptocurrency market. Additionally, the BNB, the fuel token for the Binance ecosystem, is expected to gain further utility and value in turn. Binance is the largest holder of BNB, and also controls the Bitcoin wallet with the most assets.
As the second stablecoin by market capitalization after Tether USDT, BUSD has a valuation of $19,430,293,561.
BUSD is a stablecoin founded by Paxos and Binance that is regulated by the New York State Department of Financial Services. Notably, BUSD is a fiat-backed stablecoin that maintains a U.S. dollar peg of 1:1.
Paxos issues BUSD on the Ethereum blockchain, while Binance offers a Binance-Peg BUSD token on the BNB Chain. Notably, Paxos is the mindset behind the Paxos dollar and also the gold-backed pax gold.