Crypto exchange giant Binance has confirmed that it currently has no plans to “convert” Tether (USDT) to Binance USD (BUSD) but noted that this “could change”.
On September 6, the crypto exchange surprised the market by announcing that it will end support for the US dollar-pegged stablecoin USD Coin (USDC) on its platform, along with USDP Stablecoin (USDP) and TrueUSD (TUSD).
All users who still have the three stablecoins on September 29 will have their funds automatically converted to BUSD in a 1:1 ratio over a 24-hour period.
Binance stated that the move was a decision to improve liquidity and capital efficiency for users, but notably made no mention of the largest stablecoin by market capitalization, Tether USDT.
In a statement to TBEN, a Binance spokesperson confirmed that there were no immediate plans to do the same with USDT, but noted that this could change, stating:
“We currently have no plans to automatically convert USDT to BUSD, but this could change.”
The spokesperson also confirmed that the automatic conversion and step to stop most USDC trading services is “not a temporary measure” and that it “will continue”.
Binance CEO Changpeng Zhao (CZ) on September 6 tweet clarified that the company will not scrap the three stablecoins, but will “merge all liquidity into one pair”, adding that it will offer the “best price, lowest slippage for users”.
Binance will also remove the long list of spot trading asset pairs linked to these stablecoins, with the pairs mainly switching to BUSD.
Users should also pay attention to the use of USDC in stockbroking, savings, liquid swaps and loans as those services will be discontinued for that asset as well.
Binance’s move will come with a temporary suspension of deposits and withdrawals of Ether (ETH) and Wrapped ETH (wETH) on select networks from September 6 until the Ethereum merger goes through later this month.
Related: CZ hits back at claims that Binance is a Chinese company
Data from Nansen shows that Binance has been gradually converting USDC to BUSD since mid-August, with about $1.5 billion worth switching, according to Alex Svanevik, CEO of the analytics platform.
Binance now has less than $1 billion USDC. pic.twitter.com/Sx4Wjr43V5
— Alex Svanevik (@ASvanevik) September 6, 2022
As it stands, Binance now has less than $1 billion worth of USDC on the platform, with about $993.3 million at the time of writing. In comparison, Binance has a whopping $4.99 billion worth of USDT, more than any other exchange in the world.