On Monday, September 5th, Binance, the world’s largest crypto exchange by volume, announced that it would be automatically converting new deposits in several other stablecoins directly to BUSD. The affected coins include USDC, USDP, and TUSD.
Binance’s Auto Conversion Explained
- Binance will begin auto-converting on September 29th. The conversion rate for affected stablecoins will be 1:1.
- Users will be able to convert their USDC, USDP, and TUSD into BUSD manually before auto-conversion rolls out at the same rate. Binance explained that manual conversions will require at least one of the convertible stablecoins, amounts smaller than that will be auto-converted.
- Users will still be able to withdraw USDC, USDP, and TUSD from their accounts. The conversion rate from BUSD into these coins upon conversion will be 1:1.
- Binance will delist all forms of trading which includes the affected stablecoins on September 9th. This includes spot, futures, and margin trading, as well as other related services. Binance advised users not to close positions involving the affected stablecoins before the 9th to avoid possible losses.
- Binance’s BUSD is the world’s third largest stablecoin by market capitalization. One of the coins that will no longer be supported—USDC—is one spot ahead on that list, being the second biggest stablecoin.
- Binance explained its choice regarding USDC, USDP, and TUSD as a move meant to improve liquidity and capital efficiency for its users. It is unclear whether this move has anything to do with the liquidity crisis that is affecting some crypto companies like Celsius, Voyager, Vauld, and Poolin in 2022.
This article originally appeared on The Tokenist
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