Binance Stablecoin Announcement Details, Circle USDC CEO Response.
Below we have the direct statement coming from Binance basically outlining their push for native stablecoin BUSD. They will remove USDC and USDT from the platform by converting user funds on September 29th, 2022. Creating liquidity for their ecosystem alongside making the returns from holding/ lending the stablecoin APR % the best possible with more people that use it.
According to a new Twitter post, Jeremy Allaire, co-founder and CEO of USD Coin (USDC) stablecoin issuer Circle, said that the recent decision by Binance to merge stablecoin dollar books is "a good thing" for USDC. "This move would lead to a gradual net share shift from USDT to BUSD and USDC," said Allaire. The day before, Binance announced it would cease trading support for USDC and auto-convert deposits after Sept. 29 to a consolidated Binance USD balance comprising other stablecoins pegged to the U.S. dollar. Users will be able to withdraw individual constituents from the consolidated balance at par value.
Some users pointed out that it's now possible to deposit and withdraw USDC seamlessly in Binance. Before the change, it was required to first convert USDC to BUSD or USDT and then use it to trade leveraged products. Therefore, the overall liquidity of USDC would increase. However, others pointed out that the automatic conversion could potentially result in greater redemption of USDC to mint more BUSD. According to Nansen, USDC held by Binance has decreased to less than 1 billion from 2.5 billion in July. Meanwhile, the exchange holds around 5 billion USDT.
Dune Analytics data stablecoin shows usage of USDT has 50.3% of transactions, USDC is currently the second-most popular stablecoin in the world by accounting for 33.5% of transactions in the category. Meanwhile, Binance USD sits in third place with 15.1%.
Binance to Auto-Convert USDC, USDP, TUSD to BUSD (Binance USD) 2022-09-05 11:46 Announcement Made
In order to enhance liquidity and capital-efficiency for users, Binance is introducing BUSD Auto- Conversion for users' existing balances and new deposits of USDC, USDP and TUSD stablecoins at a 1:1 ratio. With effect from 2022-09-29 03:00 (UTC), users will trade with a consolidated BUSD balance on the Binance Platform that reflects their balances of these four stablecoins (BUSD, USDC, USDP and TUSD) post conversion.
This will not affect users' choice of withdrawal: users will continue to be able to withdraw funds in USDC, USDP and TUSD at a 1:1 ratio to their BUSD denominated account balance. For more information, please refer to the FAQ.
Here is the asset conversion schedule/process:
Existing USDC, USDP and TUSD balances in user accounts will be automatically converted to BUSD at 2022-09-29 03:00 (UTC) (“Auto-Conversion”). All users will be able to see the converted balance on their accounts within 24 hours.
Any users who wish to convert their USDC, USDP or TUSD balances to BUSD at a 1:1 ratio before the Auto-Conversion, may process it manually on Binance Convert from 2022-09-26 03:00 (UTC) until 2022-09-29 03:00 (UTC). Do note that manual conversion can only be done from USDC, USDP and TUSD to BUSD and not the reverse during that period.
Please note that the minimum amount for manual conversion is 1 USDC, USDP or TUSD. User balances of less than 1 USDC, USDP or TUSD will be converted as part of the Auto-Conversion. No action is needed on your part.
After the Auto-Conversion is completed, users will be able to withdraw USDC, USDP or TUSD at a ratio of 1:1 from their BUSD balances.
Binance may amend the list of stablecoins eligible for auto-conversion.
Where any discrepancy arises between the translated versions and the original English version, the English version shall prevail.
Please note that in view of this announcement, the following changes will be made.
Spot:
Binance will remove and cease trading on the following spot trading pairs at 2022-09-26 03:00 (UTC): USDC/BUSD, USDC/USDT, USDP/BUSD, USDP/USDT, TUSD/BUSD, TUSD/USDT.
Binance will remove and cease trading on the following spot trading pairs at 2022-09-29 03:00 (UTC):
ADA/USDC, ATOM/USDC, AUD/USDC, BCH/USDC, BNB/USDC, BTC/USDC, BTTC/USDC, EOS/USDC, ETH/USDC, LINK/USDC, LTC/USDC, SOL/USDC, TRX/USDC, WIN/USDC, XRP/USDC, ZEC/USDC, BNB/USDP, BTC/USDP, ETH/USDP, ADA/TUSD, BNB/TUSD, BTC/TUSD, ETH/TUSD, TRX/TUSD, XRP/TUSD.
Users will be able to view their USDC, USDP and TUSD balances under the BUSD denominated account balance when the conversion is complete.
All pending trade orders will be automatically removed after trading ceases in each respective trading pair. Users can then trade the assets in the respective BUSD trading pairs.
Futures:
Binance USDⓈ-M Futures will cease supporting new deposits of USDC as margin assets under Multi Asset Mode or Portfolio Margin Program from 2022-09-07 03:00 (UTC).
Binance USDⓈ-M Futures Wallet will start to automatically convert USDC assets to BUSD from 2022-09-29 03:00 (UTC). The conversion will take approximately 24 hours. The conversion ratio of USDC versus BUSD is 1:1.
Important notes:
Users are strongly advised not to add positions during the conversion period to avoid any potential losses. Binance is not liable for any losses for new positions during this period that may incur due to the conversion of funds.
Users of the Portfolio Margin Program are advised to transfer USDC out of their Margin Wallet to their Spot Wallet and to top up their margin balance, if required, before 2022-09-23 03:00 (UTC). Users should monitor Uni-MMR closely to avoid any potential liquidation that could result from USDC being removed from the Margin Wallet.
Margin:
Binance will stop offering margin lending for USDC/BUSD (Cross & Isolated), TUSD/USDT (Isolated) and USDC/USDT(Cross & Isolated) at 2022-09-07 03:00 (UTC). Binance will then cease margin trading on these pairs and any open margin positions will be closed and liquidated at 2022-09-23 03:00 (UTC).
Binance will stop offering margin lending for BTC/USDC (Cross & Isolated), EOS/USDC (Cross & Isolated), ETH/USDC (Cross & Isolated), LTC/USDC (Cross), XRP/USDC (Cross & Isolated), ADA/USDC (Isolated), and ATOM/USDC (Isolated) at 2022-09-07 03:00 (UTC). Binance will then cease margin trading on these pairs and open margin positions will be closed and liquidated at 2022-09-27 03:00 (UTC).
Important notes:
Users are strongly advised to close their positions prior to the cessation of margin trading to avoid any potential losses.
Binance will close remaining positions, conduct an automatic settlement and cancel all pending orders on the above pairs at the stated times.
Savings & Staking:
Binance will cease offering USDC Flexible Savings and DeFi Staking subscription at 2022-09-23 03:00 (UTC), and all USDC subscribed to Flexible Savings and DeFi Staking will be automatically redeemed and deposited into users’ spot wallets on the same day.
Liquid Swap：
Binance Liquid Swap will close the USDC/USDT liquidity pool, and automatically redeem all users’ assets from the USDC/USDT liquidity pool to their spot wallets at 2022-09-23 03:00 (UTC). If you wish to redeem your assets manually, you can do so before the automatic redemption.
Convert:
Users will still be able to convert USDC, USDP and TUSD into BUSD as part of the Manual Conversion at a 1:1 Ratio from 2022-09-26 03:00 (UTC) until 2022-09-29 03:00 (UTC). Binance Convert will remove all other related USDC, USDP and TUSD pairs at 2022-09-26 02:00 (UTC).
Crypto Loans:
Binance Crypto Loans will remove USDC as a borrowable asset and as a collateral asset, at 2022-09-07 03:00 (UTC).
Please note Binance will close and liquidate users’ USDC loan orders, including orders with USDC as borrowable and USDC as collateral, on 2022-09-23 03:00 (UTC).
Binance Pay
Binance Pay will support the auto conversion into BUSD from 2022-09-29 03:00 (UTC).
Binance Gift Card:
USDC and TUSD gift card creation is no longer supported, and any unredeemed USDC or TUSD gift cards will still be redeemable for USDC or TUSD before 2022-09-29 06:00 (UTC). However, the redeemed coins will be subject to automatic conversion to BUSD upon the announced time. For all unredeemed USDC or TUSD gift cards after 2022-09-29 06:00 (UTC), they will be automatically converted to BUSD upon redemption.
Thanks for your support!
Binance Team
2022-09-05
