Leading crypto exchange, Binance has announced the delisting of stablecoins USDC, TUSD and USDP from their platforms. According to the announcement published today, Binance revealed that this decision was to enhance liquidity and capital-efficiency for users.
Binance added that from September 29, 2022, all existing balances and deposits of USDC,USDP and TUSD will be auto-converted to BUSD. In essence users won’t be able to able to use these stablecoins to participate in services offered on the exchange.
In addition, Binance says added that users had until the end of September to withdraw the stablecoins on the platform before the auto-conversion process comes into play.
Is this the beginning of the stablecoin wars
The announcement has caused a stir in the crypto community with many alluding that the move has more ramifications beyond enhancing liquidity and capital-efficiency. USDC is a stablecoin issued by Binance’s rival Coinbase and is the second largest stablecoin in the market after USDT.
It is also one of the few dollar-backed stablecoins that is seen as transparent and has been able to prove its dollar deposits are real. Therefore it comes as s surprise that Binance has chosen to delist the stablecoin. It remains to be seen if Coinbase would follow suit by delisting BUSD from its platform in the coming days.