Binance warned of auto-conversion of three stabelcoins to BUSD
Cryptocurrency exchange Binance will streamline its list of illiquid stablecoins by converting them to BinanceUSD (BUSD) to improve user experience.
Binance announced that it will stop trading USD Coin (USDC), USDP Stablecoin (USDP) and TrueUSD (TUSD) to improve liquidity and capital efficiency. On September 29, the aforementioned Stablecoins will be automatically converted to BUSD Stablecoin at a 1:1 ratio overnight.
Binance CEO Changpeng Zhao explained that the company will not be delisting the staplecoins but will “simply combine all liquidity into one pair”. He added that the exchange will offer “the best price and minimum slippage for users”.
In doing so, the exchange will remove the list of spot trading pairs with these Stablecoins and form new trading pairs with BUSD. Binance has warned that all services, including order placement, custody and crediting of the aforementioned Stablecoins, will be halted.
The exchange has confirmed that there are no plans to automatically convert Tether (USDT) stabelcoin in the near future, but that the list of stabelcoins may be changed if necessary. That said, the discontinuation of USDC trading “is not a temporary measure”.
Late last month, Binance warned ERC-20 token holders of planned preventive maintenance work on Ethereum Network wallets being carried out in connection with the transition of Etherium to PoS.