The announcement has just dropped: the benchmark exchange Binance lets its community know that a whole series of stablecoins will be very soon persona non grata on the world’s leading crypto platform. Only the $BUSD, Binance’s stablecoin, will remain in the running.
This way the exit for the $BUSD competition
It is through an announcement on its official website that Binance unveils its new stablecoin strategy. A strategy that we will call “vacuum cleaning” since the crypto platform explains that as of September 29, the stablecoins $USDC, $USDP and $TUSD will be automatically converted into $BUSD, Binance’s in-house stablecoin.
“In order to improve liquidity and optimize capital efficiency for users, Binance is implementing Automatic Conversion to BUSD of the following stablecoins: USDC, USDP and TUSD. The conversion will be done at a ratio of 1:1 and is for existing balances and new deposits of USDC, USDP and TUSD. Starting September 29, 2022 at 03:00 UTC, users will trade with a consolidated balance in BUSD is equivalent to their balances of these stablecoins (BUSD, USDC, USDP, and TUSD) on the Binance platform after conversion. »
Binance Press Release
The platform indicates that withdrawals from customer balances can still be made in $USDC, $USDP and $TUSD.
Regarding the particular case of USDC stablecoins positioned in collateral loans, contracts will close on September 7. The same applies to funds placed in flexible savings which will be reimbursed (it will therefore be necessary to subscribe to a new contract in $BUSD).
The reason for this major maneuver would therefore be to be sought on the side of a desire “to improve liquidity, for the benefit of users”. It is of course difficult not to speculate on the real ambitions behind this operation. An operation that allows the platform to exclude some of its main competitors from its own ecosystem. A meaningful transition even though everyone in the industry is aware of the strategic importance for the future of dominating the stablecoin sector.
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