Consequently, the most recent software will allow users to transform any current user balances and fresh deposits of four stablecoins, including USD Coin (USDC), Pax Dollar (USDP), and True USD (TUSD), into the program's own native stablecoin BUSD, thereby rescinding trade of the three competing stablecoins.
The company provided the following justification for the change:
“Binance is implementing BUSD Auto-Conversion for users' existing balances and new deposits of USDC, USDP, and TUSD stablecoins at a 1:1 ratio.”
Moreover, Binance stated that it would remove and discontinue dealing on spot pairs such USDC, USDP, and TUSD.
Beginning on September 29, the switch is planned—at 2022-09-29 03:00 (UTC), consumers will trade with a combined BUSD balance just on Binance Platform which represents their holdings of these four stablecoins (BUSD, USDC, USDP, and TUSD) post-conversion.
According to CoinMarketCap, USDC has a market valuation of $51 billion, which makes it the second-largest stablecoin. While USDP and TUSD are much smaller, Binance's BUSD stablecoin ranks third with a market worth of $19 billion.
With this change, the 120 million active users worldwide of Binance will no longer have full ownership of USDC, USDP, and TUSD.
The list of stablecoins that are qualified for auto-conversion may be extended or updated, according to Binance.
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