Binance plans to convert any existing user balances and new deposits of USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stable coin (BUSD). This would be done with the aid of newly introduced “BUSD Auto-Conversion“.
This was disclosed in a statement recently issued by Binance titled, “Binance to Auto-Convert USDC, USDP, TUSD to BUSD (Binance USD)”.
Binance also announced that it will eliminate and suspend trading on spot pairings as USDC, USDP, and TUSD, beginning on September 29th.
What Binance is saying
The statement reads “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 withdraw funds in USDC, USDP and TUSD at a 1:1 ratio to their BUSD denominated account balance”, the company added.
Binance also stated 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. The company also stated that it may amend the list of stablecoins eligible for auto-conversion.
Additional changes announced by the company include the removal of support for USDC, USDP, and TUSD products, including spot trading, futures, and margin lending.
USDC products affected include saving accounts, Defi staking subscriptions and crypto loans, which will be closed and liquidated on September 23rd.
