Circle CEO, Paxos, and Trueusd Speak on Binance’s Stablecoin Auto-Conversion Decision – Bitcoin News

Binance stated that on September 5th, it would be dropping a few usdc-trading pairs and converting specific stablecoin accounts into busd before September 29. While the move was controversial among crypto proponents on social media, Circle Financial CEO Jeremy Allaire explained that the change “will likely lead to more usdc flowing to Binance.”

Circle’s Jeremy Allaire Thinks Binance’s Forced Stablecoin Conversions Will Likely Lead to More USDC Flowing to the Exchange

Circle’s CEO Jeremy Allaire spoke about Binance’s recent move to “enhance liquidity and capital-efficiency for users” by removing a number of stablecoin trading pairs and auto-converting USDC, USDP, and TUSD stablecoins at a 1:1 ratio to BUSD. Circle and Coinbase were the companies behind Centre consortium. They are the issuers and custodians of USDC (USDC) as well as euro coins (EUROC). Allaire believes the forced conversions have sparked a number of “misleading headlines and interpretations.”

Allaire further stressed that Binance is “not ending support for USDC, and [the] change will likely lead to more USDC flowing to Binance.” The Circle CEO notedIt is impossible for a trading platform to unilaterally convert customer assets in an American market. Allaire would never have attempted this approach. Allaire explained that Binance’s goal is to consolidate dollar liquidity through cash equivalent stables. Allaire said that Binance couldn’t switch to USDT (tether) right now because it would cause too much disruption. Allaire opined:

Binance is trying consolidate dollars liquidity with cash equivalent stables. That’s good for liquidity and market depth. [Tether] is NOT cash equivalent — not even close. Binance can’t do this now / yet w [tether]It would cause too much disruption to the current situation [tether]Binance liquidity

Trueusd Addresses Binance’s Auto Conversion Move — Paxos Says Decision Is a ‘Positive Step for the Safety of Its Customers’

In addition to Allaire’s commentary on Tuesday, Trueusd, the issuer of TUSD, tweeted about Binance’s decision as well. “TUSD will support Binance as always and have more cooperation with [the] Binance ecosystem,” the official Trueusd Twitter account wrote. “Binance will maintain multi-chain TUSD deposit and withdrawal support on their exchange for all the following token standards.” For his part, Allaire thinks that with Binance consolidating its dollar books, ​​it will “now be easier and more attractive to move USDC to and from Binance for trading core markets.”

Paxos, the issuer of USDP, also chimed in on the conversation concerning Binance’s recent move toward liquidity consolidation. “Binance has made a positive step for the safety of its customers by pushing to support [BUSD primarily],” Paxos wroteTuesday. “Unlike competing stablecoins, BUSD is regulated by NYDFS which sets rules and monitors compliance with those rules.”

In this story, tags
Auto-Conversion, Binance, Binance BUSD, Binance USDC, Binance’s BUSD, BUSD, Centre Consortium, Circle CEO, Circle Financial, Circle Founder, five stablecoins, Jeremy Allaire, Paxos, Stablecoins, three stablecoins, trueusd, TUSD/BUSD, TUSD/USDT, U.S. dollar-pegged token, usd coin, USD stablecoin, usd stablecoins, USDC spot trading, USDC support, USDC/BUSD, USDC/USDT, USDP/BUSD, USDP/USDT

Are you adamant that Jeremy Allaire and Trueusd will address the Binance decision about auto-converting stablecoin balances to specific stablecoins? We’d love to hear your views on the subject below in comments.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at News is Jamie Redman. Redman joined the cryptocurrency community in 2011 and has been active since then. Redman is passionate about Bitcoin and open-source codes. Redman has contributed more than 5700 articles to News since September 2015. These articles are about disruptive protocols that are emerging.

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