Home Binance Binance has no plans yet to introduce auto-conversion for Tether, but this “may change”

Binance has no plans yet to introduce auto-conversion for Tether, but this “may change”

by Chief editor

Cryptocurrency exchange Binance confirmed that it currently has no plans to introduce “auto-conversion” of Tether (USDT) to Binance USD (BUSD), but did not rule out the possibility that this “could change”.

On 6 September, the cryptocurrency exchange announced that it would no longer support trading on its platform of USD-linked USD Coin (USDC), as well as USDP (USDP) and TrueUSD (TUSD).

These assets will be automatically converted to Binance USD (BUSD) on 29 September at a 1:1 ratio within 24 hours.

The exchange explained that this is being done to improve liquidity and capital efficiency for users.

In a statement to Cointelegraph, a Binance spokesperson confirmed that there are no plans to do the same with USDT in the near future, but noted that this could change:

“At the moment we have no plans to auto-convert USDT to BUSD, but that could change.”
He also confirmed that auto-conversion and the termination of most trading services for USDC “is not a temporary measure”.

Binance CEO Changpeng Zhao (CZ) explained in a 6 September tweet that the company will not be removing staplecoins from the listing, but will “simply consolidate all liquidity into one pair”, adding that this will provide “better pricing and minimal slippage for users”.

Further, support for USDC/BUSD, USDC/USDT, USDP/BUSD and other currency pairs will be discontinued.

Binance will also remove stacking, liquidity swaps and earn-programs from USDC.

Nansen data shows that Binance has been gradually converting USDC to BUSD since mid-August, during which time around $1.5bn has been transferred, according to Alex Swanewick, CEO of the analytics platform.

The Binance platform currently holds less than $1 billion worth of USDC ($993.3 million at the time of writing). By comparison, Binance holds USDT worth $4.99 billion – more than any other exchange in the world.

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