Binance; USDC shared an announcement announcing that it will automatically convert Pax Dollar (USDP) and TrueUSD (TUSD) to Binance USD (BUSD). The exchange claimed that with this transformation, it will increase liquidity and benefit users.
Koinfinans.com As we have reported, leading cryptocurrency exchange Binance, USD Coins (USDC) and Binance announced an automatic conversion feature for USD (BUSD) and other stablecoins. On September 5, USDC, Pax Dollar (USDP) and TrueUSD (TUSD) shared an announcement, explaining that users will be automatically converted to BUSD for their existing balances and new deposits.
The feature will be activated from September 29.
#Binance to Auto-Convert $USDC, $USDP, $TUSD to #BUSD (Binance USD).
— Binance (@binance) September 5, 2022
stablecoinThe ‘s will be converted at a 1:1 ratio and the balances will be automatically shown as a consolidated BUSD balance. The exchange thinks that automated conversion will help increase liquidity and capital efficiency for users. We would like to remind you that users can withdraw money in USDC, USDP and TUSD at a ratio of 1:1 from their consolidated BUSD balances.
Therefore, Binance has announced that it will also remove several stablecoin-related spot trading pairs, including BUSD pairs. Binance also announced that it will remove USDC as margin assets for futures trading. In addition, various changes will be made to other features on the platform such as savings and staking, liquid swap, crypto credits, Binance Pay and Binance Gift Card.
The automatic conversion mechanism is likely to have a huge impact on the stablecoin market, which Tether (USDT) currently dominates. While the supply of Tether is 66.2 billion, BUSD stands at 19.1 billion. Tether’s share of the total stablecoin supply has fallen over the past 12 months, currently at 46.7%, with USDC at 30.36% and BUSD at 13.73%.
USDT currently has a market cap of $67.4 billion, while BUSD has a market cap of $19.4 billion. It is worth noting that USDC has a market cap of $51.8 billion, which is considerably higher than BUSD. DAI, another popular stablecoin in DeFi, has $6.4 billion.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.