The world’s largest cryptocurrency exchange by trade volume, Binance, has announced that it will be axing support for USD Coin (USDC).
Any current holdings that consumers have will be automatically converted into Binance’s own stablecoin Binance USD or BUSD.
The company announced earlier this week that the BUSD auto-conversion will consider several stablecoins, beyond USDC, including pax dollar (USDP), trueUSD (TUSD) and USDC and convert those into the exchange’s native token instead.
This comes at the same time as Binance continues to push cryptocurrency into the mainstream. The company recently struck a partnership with Mastercard to this end.
Conversion will happen by September 29 and the exchange will be converting at a ratio of 1:1.
Nevertheless, consumers who wish to withdraw from the exchange will be able to do so in the denomination they prefer, including in the stablecoins that Binance will now no longer support.
This is an interesting development given that many of these tokens are particularly strong with the community.
Solutions such as USDC have gone to extraordinary lengths to meet global regulations and provide a true cryptocurrency store of value.
But Binance seems to be keen on promoting its own stablecoin instead, hoping to reduce the market share for those coin it now sees as competitors.
In the meantime, Binance will not delist Tether USDT, which is not necessarily as compliant as the other ones.
However, Tether dominates 44% of the stablecoin market which could be a reason why Binance prefers to keep it and delist the others.
There are still some lingering fears that the Terra collapse in May could yet replicate itself. Terra’s crash caused an estimated $80bn in market valuation lost, but Binance does not seem to be doubting USDP, TUSD or USDC’s stability in making its decision to delist.
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