Stablecoins USD Coin (USDC), TrueUSD (TUSD), and Paxos Standard (USDP) will no longer be available for trading on the Binance platform, as it will convert all user balances in these coins to Binance USD (BUSD) on September 29.
“This will not affect users’ choice of withdrawal: 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,” said Binance in a blog post.
The exchange adds that the minimum amount for manual conversion is 1 USDC, USDP, or TUSD and users could see the converted balance on their accounts in 24 hours. However, the “lower balance accounts” would automatically convert to BUSD.
Three days before the auto-conversion on September 29, the specific spot trading pairs will be deleted and their trading will end. At 8:30 am IST on September 26, Binance will delete and stop trading on the following spot trading pairs: USDC/BUSD, USDC/USDT, USDP/BUSD, USDP/USDT, TUSD/BUSD, TUSD/USDT.
The company also announced discontinuing its support to products involving spot trading, futures, and margin lending for USDC, USDP, and TUSD. Binance will stop offering USDC Flexible Savings and DeFi Staking subscriptions at 8:30 am IST on September 23, and all USDC subscribers will be automatically redeemed and transferred into customers’ spot wallets the same day.
USDC will no longer be available as a borrowable asset or collateral on Binance’s crypto loan platform from 8:30 am IST on September 7. Binance will also close and liquidate users’ USDC loan orders, including orders with USDC as borrowable and collateral, at 8:30 am on September 23.
Binance Pay will also delist USDC, USDP and TUSD tokens at 7:30 am IST on September 12.
USDT’s current market value is around $68 billion, ahead of USDC’s $51 billion, and BUSD’s $19 billion in third place. TUSD and USDP are significantly smaller.
Stablecoins are cryptocurrencies whose prices are tied to stable assets like a fiat currency, or an exchange-traded commodity. Tether (USDT), the biggest stablecoin, with a market cap worth $67 billion, will continue to trade on Binance.
Binance said that its latest decision would “enhance liquidity and capital-efficiency for users”.