Beginning September 29, holdings in leading stablecoins on Binance’s platform will be auto-converted to its own stablecoin, BUSD. Following thereafter, the crypto exchange will no longer support trading for leading dollar-pegged coins like USDC, USDP, and TUSD.
In a blog post on Monday, Binance announced that it will be launching the BUSD Auto-conversion “in order to enhance liquidity and capital-efficiency for users.”
“With effect from 2022-09-29 03:00 (UTC), 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 blog read.
While the conversion will automatically consolidate holdings into BUSD, “users will continue to be able to withdraw funds in USDC, USDP and TUSD at a 1:1 ratio to their BUSD denominated account balance.”
Nevertheless, aside from removing and halting spot trading pairs supporting other stablecoins, Binance will also stop offering margin lending, cease offering USDC Flexible Savings, remove USDC as a borrowable and collateral asset, and stop supporting USDC and TUSD gift card creation.
Binance Futures will also stop “supporting new deposits of USDC as margin assets” and will automatically convert USDC assets to BUSD.
Users are advise that all pending trade orders “will be automatically removed” after September 29.
As of June 2022, Binance is embroiled in a legal kerfuffle as Utah resident Jeffrey Lockhart had sued the exchange for endorsing the safety of the stablecoin TerraUSD despite it being “an unregistered security.”
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
