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Binance, the largest cryptocurrency exchange in the world by volume, has undergone some significant changes over the past year.
Recently, the exchange announced that it would automatically convert USDC, USDP, and TUSD stablecoin deposits to its original BUSDs.
The decision effectively removes three rival stablecoins.
The announcement
Binance’s announcement came on Monday and said the investment conversion would take place on September 29th.
However, they have assured users that they can withdraw funds in USDC, USDP, or TUSD when they remove funds from the platform.
“This will not affect users’ choice of withdrawal: users will be able to withdraw funds in USDC, USDP, and TUSD at a 1:1 ratio to their BUSD denominated account balance,” according to a message from Binance.
According to Binance, users can see the converted balance in their accounts within 24 hours.
Meanwhile, the minimum amount for manual conversion is 1 USDC, USDP, or TUSD.
Also, accounts with lower balances are automatically converted to BUSD.
What led to the move?
Binance’s decision surprised many as they pursued exchange rival Coinbase by reducing it on price.
It also effectively bans USDC (the second-largest stablecoin) from one of the most prominent places in crypto.
The change creates an obstacle to overtaking Tether (USDT) as the largest stablecoin.
The market value of USDT ($68 billion) leads that of USDC ($52 million), while BUSD takes third place with a market value of $19 billion.
Meanwhile, USDP and TUSD are significantly smaller stablecoins.
Binance also said it would modify the list of stablecoins eligible for automatic conversion.
Response to the Binance announcement
When the announcement was made, it was met with skepticism online.
Many pointed out how the decision transforms competing stablecoins into those of the exchange.
Twitter user Bloodgood (@bloodgoodBTC) didn’t hold back, writing:
“Crypto monopoly 101, Binance will remove $USDC as a tradable asset by Sep [sic] 25 to push their $BUSD.”
“They also hired ex Brazilian central Bank President as advisor, because bankster connections matters. For regulations.”
“Binance is deleting competitors like Google did 10 years ago.”
Additional Changes
The change isn’t Binance’s only big announcement, as it also included the removal of support for USDC, USDP, and TUSD products.
Other products include spot trading, futures and margin lending.
Meanwhile, Tether, the largest stablecoin with a market capitalization of $67 billion, remains accessible on Binance.
References:
Binance, issuer of third-biggest stablecoin, to stop supporting larger rival USDC
Binance pulling support of USDC, converting several stablecoins to BUSD
