Thursday, July 25, 2024

No plans to “auto-convert” Tether to BUSD, says Binance.

Binance has no plans to “auto-convert” Tether (USDT) to Binance USD (BUSD). But the crypto exchange says this may change. Binance announced on September 6 that it will cease trading support for the US dollar-pegged stablecoin USD Coin (USDC) on its platform with USDP stablecoin and TrueUSD (TUSD).

Users still holding the three stablecoins on September 29 will have their holdings auto-converted to BUSD at a 1:1 ratio over a 24-hour period. Binance said it was a decision to enhance liquidity and capital efficiency for users. However, the crypto exchange did not say anything about Tether USDT. A spokesperson for Binance confirmed they did not have any immediate plans to do the same to USDT, but it could change. The spokesperson said the auto-conversion and move to cease most trading services for USDC is not a temporary measure and it will continue.

Changpeng Zhao, Binance CEO, tweeted that they will not de-list the three stablecoins. It’s just merging all liquidity into one pair and will offer the best price, and lowest slippage for users. The platform plans to remove a long list of spot trading asset pairs matched to the stablecoins with the pairings switching primarily over to BUSD. As such, users need to keep an eye out for the use of USDC in the exchange’s staking, savings, liquid swaps, and loans. These services will be shut down for that asset also.

This comes alongside a temporary suspension of Ether and Wrapped ETH (wETH) deposits and withdrawals on selected networks until the Ethereum Merge goes through later this month. Binance, as per data from Nansen, has been gradually converting USDC to BUSD since mid-August. The crypto exchange now has less than $1 billion worth of USDC on the platform. But it holds $4.99 billion worth of USDT.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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