Binance stops supporting USDC, the second largest stablecoin – TBEN

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Binance, the issuer of the world’s third-largest stablecoin, said Monday it will convert customers’ holdings in three rival stablecoins USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stablecoin ( BUSD) on Sept. 29 to “improve liquidity and capital efficiency for users” in a move that has baffled many enthusiasts.

As a result of the move, the world’s largest crypto exchange said it will remove spot, futures and margin trading with USDC, USDP and TUSD pairs.

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“This will not affect users’ withdrawal choices: Users can continue to withdraw funds in USDC, USDP, and TUSD at a 1:1 ratio to their BUSD-denominated account balance,” Binance said in a blog post.

Issued by Circle – a $9 billion company that counts BlackRock, Fidelity, FTX and Accel among its backers – USDC is the second largest stablecoin with a market cap of over $50 billion. The stablecoin is used in transactions worth more than $5.5 billion per day, according to data from CoinMarketCap.

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BUSD, Binance’s stablecoin, currently has a market capitalization of $19.3 billion. Daily volume trades rose more than 56% on the news to more than $6.5 billion, according to CoinMarketCap.

Circle, a company headquartered in the US, did not immediately respond to a request for comment.