Binance Switches To Multiple Stablecoins, Discontinues Auto-Conversion Policy
Binance CEO Changpeng “CZ” Zhao on Saturday said Binance will now support multiple stablecoins and discontinued its Binance USD (BUSD) Auto-Conversion policy introduced last September. The move surprisingly came after Circle’s USDC stablecoin depeg due to $3.3 billion exposure to failed Silicon Valley Bank.
According to an official announcement on March 11, Binance has stopped its BUSD Auto-Conversion of new deposits of USDC, USDP, and TUSD stablecoins. Users will not be able to withdraw USDC, USDP, or TUSD from their BUSD balances.
Moreover, users can convert their BUSD to USDC or USDP at a 1:1 ratio through the Binance Convert feature until 06:00 AM UTC on March 18. Users can also covert BUSD balances to TUSD manually on Binance Convert, but Binance is yet to announce a deadline for TUSD conversion.
Notably, TUSD, USDC or USDP conversion to BUSD is not valid as Binance earlier announced ending BUSD support as Paxos stopped minting BUSD after U.S. regulators ordered the firm.
Binance has also added multiple stablecoins to support the crypto community following Circle’s USDC depeg. Users can trade on new spot trading pairs BNB/TUSD, BTC/TUSD, ETH/TUSD, TUSD/USDT, USDC/USDT, and USDP/USDT.
Anti-Binance Stance of U.S. Regulators
Last year, Binance ended support for competing stablecoins including USD Coin (USDC), USDP, and TUSD for enhancing liquidity and capital efficiency for users. This led to a rise in BUSD dominance and other stablecoins such as USDT and USDC market cap continued to fall.
Binance CEO believes that U.S. regulators started an anti-Binance campaign to end its dominance in the crypto market fearing foreign control. Regulators have also opposed the acquisition of bankrupt crypto lender Voyager Digital assets to Binance.US, a U.S.-based arm of Binance. Meanwhile, Binance.US won the bankruptcy court’s approval for the acquisition, but U.S. DOJ challenged the judge’s decision.
Also Read: Venture Capital Firms Agree To Support Silicon Valley Bank Again
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