Binance, the world’s largest cryptocurrency exchange, will automatically convert user balances and new deposits of USD Coin, Pax Dollar and True USD stablecoins into its own stablecoin, Binance USD.
The move is aimed at increasing liquidity and capital efficiency for users, the company said in a statement on Monday.
Conversion of user holdings will take place on September 29, Binance said.
USD Coin (USDC) is issued by US company Circle and is the world’s second-largest stablecoin, with a market valuation of US$51.8 billion, according to data provider CoinGecko cryptocurrencies. Binance’s stablecoin (BUSD) is valued at around $19.4 billion, according to CoinGecko.
“While optimizing dollar liquidity on the world’s largest exchange could have benefits, the paradigm raises potential market conduct issues,” a Circle spokesperson said in emailed comments, without detailing what those issues would be.
Jeremy Allaire, CEO of Circle, said in a tweet that “the convergence of dollar reserves on Binance […] it’s a good thing. USDC’s utility just increased.”
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