In order to promote its own competing product, the cryptocurrency exchange known as Binance has effectively prohibited the trading of USD Coin (USDC), which is the second-largest stablecoin.
Customers’ holdings of USDC will be converted to Binance USD on September 29, according to an announcement made by the biggest digital asset exchange in the world on Monday (BUSD). The identical thing is going to take place with two less significant stablecoins, namely Pax Dollar (USDP) and TrueUSD (TUSD).
Customers who transfer USDC, USDP, or TUSD will have those coins automatically converted to BUSD; however, customers will still be able to withdraw those other stablecoins when they take money out of Binance.
The action effectively removes USDC, which has a market cap of nearly $52 billion, as a tradable asset on one of the most prominent perches in crypto, which removes momentum in the race to overtake Tether (USDT) as the largest stablecoin. The market cap of USDC is nearly $52 billion. It’s a headache for Circle Internet Financial, USDC’s issuer, as the company mulls an IPO.
The unexpected move comes as the largest exchange in the world is going after another competitor, Coinbase, which is well known for its high fees, by going after it by going after it by undercutting it on price.
BUSD currently holds the position of third largest stablecoin with a market cap of $19.5 billion. The TUSD and USDP pair comes in at position five and six, respectively, with a market cap of one billion and 945 million dollars.
In many contexts, stablecoins perform the function of acting as a digital surrogate for the United States dollar, making them an essential component of the crypto market. Stablecoins are a type of digital currency that is designed to maintain the same value as a traditional asset, such as a fiat currency. The dollar is the most widely used example of this type of asset.
The market for stablecoins is dominated by USDT, which holds a market share of 44%.