Binance, the world's biggest cryptocurrency exchange, is converting user balances and new deposits of the stablecoins USD Coin, Pax Dollar, and True USD into its own stablecoin called “Binance USD.”
The move will help to enhance liquidity and capital efficiency for the exchange’s users, Binance said in a written statement.
Stablecoins are a type of cryptocurrency designed to maintain a constant value through a 1:1 peg to the U.S. dollar or other fiat currency.
Stablecoins play an important role in facilitating cryptocurrency trading and allow investors to store cryptocurrency cash without converting it back into a fiat currency.
Binance said it will stop trading in USD Coin, Pax Dollar, and True USD, although users will still be able to withdraw funds in the form of these stablecoins going forward.
The conversion of users' holdings will take place automatically on September 29 of this year, said Binance.
USD Coin (USDC) is the world's second largest stablecoin, with a market capitalization of $51.8 billion U.S., according to industry data. Binance's stablecoin (BUSD) is valued at about $20 billion U.S.
Products impacted by this change include saving accounts, DeFi staking subscriptions, and cryptocurrency loans, which will be closed or liquidated on September 23, said Binance.
