Binance names all StableCoin stocks in Busd around
Binance names all StableCoin stocks in Busd around
- According to Binance, the step is intended to improve liquidity and capital efficiency for users
- "Converged dollar books on Binance - now just like on FTX and Coinbase - are a good thing," said the CEO from Circle
The cryptocurrency exchange Binance removes several stablecoin trading pairs and will automatically convert user stocks in USDC and other stable coins-with the exception of Tethers USDT-automatically into their own Binance (BUSD) token.
This effectively means that competing stable coins - and their order books - are consolidated in the native stable coin of the platform. However, the step does not affect withdrawals, and Binance customers can continue to withdraw funds that are on the three stable coins.
Users who want to convert their stocks before automatic conversion in ratio 1: 1 in Busd can do this manually Bony conversion between September 26th and September 29th.
Binance said the step was "a business decision to improve liquidity and capital efficiency for users".
"Since Busd is 100 % covered by means of payment and payment of payment and a stable coin that is regulated by the New York State Department of Financial Services (NYDFS), users can be protected," a spokesman told Blockworks.
BUSD is managed by the third-party provider Paxos, which processes dollar returns, assets and certificates.
Binance added that Usdt was not one of the stable coins that are involved in the initiative for automatic conversion, but gave no reason for this. The spokesman rejected a statement when he was asked how much USDC is currently in the Wallets of Binance.
The competing stock exchange FTX aggregates in a similar way to StableCoin deposits of USDC, TUSD, USDP and Busd as the "USD" in the wallet of their customers, while USDT credit is shown separately. FTX does not have its own branded stable.
The USDC issued by Circle is the second most valuable stable coin with a market capitalization of around $ 52 billion. Blockworks research ’s portal shows. Binance's stablecoin lags with a market capitalization of far after 19.4 billion dollars Tether has about 67.5 billion US dollar.
jeremy allaire, co -founder and CEO of Circle, seemed to agree with the decision of Binance, The movement would lead to a gradual shift in the net components from Tether to Busd and USDC. "Converged dollar books on Binance - now just like on FTX and Coinbase - are a good thing," he wrote.
forecast: This step leads to a gradual shift in the net components from USDT to Busd and USDC. https://t.co/pvitiuxo5d
- jeremy allaire (@jerallaire) 5. September 2022
The decision to remove most competing stable coins as a trading couple also met with skepticism. A Twitter commentator described Binances decision as "cryptomonopol 101".
The plan of Binance, however, allows users to continue to withdraw USDC, USDC or TUSD in a ratio of 1: 1 after conversion, so that nobody is forced to use Busd to interact with bony.
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The contribution Binance to Rename All Stablecoin Holdings to Busd is not a financial advice.