Binance has announced that it will remove the USDC stablecoin along with two other stablecoins from the platform’s list of spot trading pairs.
USDC, USDP, TUSD delisted
Other stablecoins delisted along with USDC are USDP and TUSD. Binance, the world’s largest cryptocurrency exchange by trading volume, made the announcement through a statement released Monday, claiming that the main reasons behind the decision were to improve liquidity and capital efficiency for users.
According to the statement, the delisting will take effect at 3AM (UTC) on September 29, when existing user balances and new deposits of USDC, USDP and TUSD stablecoins will be converted to Binance’s own stablecoin, BUSD. 1:1 ratio.
The statement reads,
“In order to improve liquidity and capital efficiency for users, Binance is introducing automatic BUSD conversion on a 1:1 basis for users’ existing balances and new deposits in USDC, USDP and TUSD stablecoins.”
Warning to users
The delisting of the USDC stablecoin will affect all products on Binance, including spot trading, futures trading, margin lending, flexible savings and DeFi Staking, Binance Liquid Swap, Binance Convert, Crypto Loans, Binance Pay, and Binance Gift Card.
The statement also states that after the switch, users will be able to use their combined BUSD balance, which will be the sum of their BUSD, USDC, USDP, and TUSD stablecoins. In addition, the automatic conversion will not affect the user’s withdrawal choice. The team also reminds users not to add positions during the exchange, especially to avoid any losses that may be caused by the exchange of funds. Additionally, users are advised to transfer all USDC holdings from their margin wallets to their spot wallets and top up their margin balances before the given conversion time.
Circles and USDC
USDC is the second largest stablecoin in the world, with a market value of more than $50 billion. It is issued by Circle. freeze Tornado Cash wallet is approved on its platform. The decision also resulted in the freezing of funds worth 75,000 USDC.Previously in July 2022, the company disclosed a detailed Reserve report, detailing that its USDC stablecoin is backed only by cash and short-term treasuries. Despite the FUD in the market around stablecoins, USDC has been doing well in 2022, especially due to its DeFi angle.
Disclaimer: This article is for informational purposes only. It is not intended or intended to be used as legal, tax, investment, financial or other advice.
