The world's largest crypto exchange announced Monday it would cease
trading support for USDC and auto-covert deposits to its own stablecoin
after Sept 29.
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.
Data
from Dune Analytics suggest that USDC is currently the second-most
popular stablecoin in the world, accounting for 33.5% of transactions in
the category. It has been gaining in market share since two years
prior. Tether (USDT)
is currently the most widely-used stablecoin, with a market share of
50.3%. Meanwhile, Binance USD sits in third place with 15.1%.
source link : https://cointelegraph.com/news/circle-co-founder-says-converged-dollar-books-on-binance-would-be-good-for-usdc
