- Binance Traders will have their stablecoin holdings of USDC, USDP, and TUSD auto-converted to BUSD by month end.
- The decision was made to enhance liquidity and capital efficiency for users.
- Users will still be able to withdraw those coins at a 1:1 ratio to their BUSD-denominated account balance.
Traders on Binance, the third-largest stablecoin issuer, will have their stablecoin holdings of USDC, USDP, and TUSD auto-converted to the Binance native stablecoin BUSD on September 29, 2022.
#Binance to Auto-Convert $USDC, $USDP, $TUSD to #BUSD (Binance USD).
— Binance (@binance) September 5, 2022
Binance announced this development through a post on their official website, where it noted that the action was “to enhance liquidity and capital-efficiency for users.” Therefore, it would be “introducing BUSD auto-conversion for users’ existing balances and new deposits of USDC, USDP, and TUSD stablecoins at a 1:1 ratio.”
Post-conversion, users will trade with a consolidated BUSD balance on the Binance platform that reflects their balances of the four stablecoins. Notably, this action does not imply that the exchange is delisting the stablecoins, as it will not affect a trader’s choice of withdrawal. Instead, 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.
Given the impending development, the platform will remove and cease trading on the following spot trading pairs from the stated date: USDC/BUSD, USDC/USDT, USDP/BUSD, USDP/USDT, TUSD/BUSD, TUSD/USDT, and all other altcoin trading pairs of the stablecoins like ADA/USDC, BNB/USDC, BTC/USDC, ETH/USDP, XRP/TUSD and more.
However, Binance USDⓈ-M Futures will cease supporting USDC as margin assets under Multi Asset Mode or Portfolio Margin Program from September 7. Users are strongly discouraged from adding positions during the conversion to avoid potential losses as the exchange denounces such liability.
Additionally, users of the Portfolio Margin Program are required to transfer USDC from their margin wallet to their spot wallet and top up their margin balance, if needed, before September 9.
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