Binance withdrawal support for USDC, convert multiple Stablecoins to BUSD

Binance, the world’s largest cryptocurrency exchange by volume, announced today that it will automatically begin converting existing and new stablecoins deposits from USDC, USDP, and TUSD to native BUSD — effectively eliminating three competing stablecoins.

The company says the move will improve liquidity and capital efficiency for users.

Among the stablecoins, USDC is the second largest with a market capitalization of $51 billion, according to CoinMarketCap. The BUSD stablecoin is in third place, with a market capitalization of $19 billion – less than half the value of USDC. This action effectively removes the direct USDC (and USDP and TUSD) sponsorship of Binance’s 28 million users.

“This will not affect users’ withdrawal options: users will still be able to withdraw funds in USDC, USDP and TUSD at a 1:1 ratio to their BUSD account balance,” Binance said in a support post announcing the change. He adds that the change will take effect on September 29.

Users will be able to see the transferred balance in their account within 24 hours, the exchange said, adding that the minimum amount for manual transfer is $1, USD or USD. Accounts with low balances are automatically converted to BUSD.

Binance says it may change the list of stablecoins eligible for automatic conversion.

News of Binance’s decision was met with some skepticism, noting that the move is turning rival stablecoins into Binance’s private coins.

“Crypto 101 monopoly, Binance will remove $USDC as a tradable asset by September 25th to power BUSD.” BloodgoodBTC wrote on Twitter. “Binance is removing competitors like Google did 10 years ago.”

Additional changes announced by the company include removing support for USDC, USDP and TUSD products, including spot trading, futures and margin lending.

The largest stablecoin, Tether (USDT), has a market capitalization of $67 billion and will still be available on Binance.

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