San Francisco: Leading crypto exchange Binance has announced to discontinue support for three stablecoins -- USDC, USDP and TUSD -- and will merge those holdings in its own stable coin called BUSD. The company said the move, to be effective from September 29, is to enhance liquidity and capital-efficiency for users. As a result, Finance will cease spot, future and margin trading with USDC, USDP and TUSD stablecoins. Cryptocurrency prices in India today (06 Sep 2022).

"Binance is introducing BUSD auto-conversion for users' existing balances and new deposits of USDC, USDP and TUSD stablecoins at a 1:1 ratio," the crypto exchange said in a statement late on Monday. "Users will trade with a consolidated BUSD balance on the Binance Platform that reflects their balances of these four stablecoins (BUSD, USDC, USDP and TUSD) post conversion," it added.

Binance said the move will not affect users' choice of withdrawal and they will continue to be able to withdraw funds in USDC, USDP and TUSD at a 1:1 ratio to their BUSD denominated account balance. Existing USDC, USDP and TUSD balances in user accounts will be automatically converted to BUSD on September 29, and all users will be able to see the converted balance on their accounts within 24 hours.

The minimum amount for manual conversion is 1 USDC, USDP or TUSD. User balances of less than 1 USDC, USDP or TUSD will be converted as part of the auto-conversion. USDC is issued by Circle and is the second-largest stablecoin with a market capitalisation of over $50 billion. BUSD has a market cap of $19.3 billion. Stablecoins are digital units of value that rely on stabilisation tools to maintain a stable value relative to one or several official currencies or other assets (including crypto-assets).

(The above story first appeared on LatestLY on Sep 06, 2022 11:26 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website