Circle CEO Says That Binance Delisting USDC Won’t Be Much Of A Problem
- Jeremy Allaire, the Chief Executive Officer of Circle, believes that the crypto exchange Binance’s move to automatically convert USDC and two other stablecoins might lead to more USDC flowing into the exchange platform.
- Combined dollar books will make it simpler to transfer USDC to and from Binance for trading core markets, according to Allaire.
Jeremy Allaire, the Chief Executive Officer of the Circle, whose stablecoin USDC is being converted by Binance, has come forward to explain the consequences of the act.
Allaire believes that the crypto exchange Binance‘s move to automatically convert USDC and two other stablecoins might lead to more Circle USD (USDC) flowing into the exchange platform.
The Circle CEO stated on Twitter:
“Binance is trying to consolidate dollar liquidity w cash equivalent stables. That’s good for liquidity and market depth.”
Recall that the world’s largest crypto exchange Binance recently announced that it would convert balances and new deposits of Circle’s USD Coin (USDC), TrueUSD (TUSD), and Pax Dollar (USDP) to its native stablecoin (BUSD) in a 1:1 ratio. Even after the auto-conversion, which is scheduled for September 26, users will be allowed to withdraw these coins at the same ratio from BUSD.
However, according to Circle CEO:
“Binance is not ending support for USDC, and change will likely lead to more USDC flowing to Binance.”
Combined dollar books will make it simpler to transfer USDC to and from Binance for trading core markets, according to Allaire. “Given how limited BUSD usage is outside of Binance, this will likely benefit USDC usage as the preferred cross CEX and DEX stablecoin rail. Unless Binance can convince all their competitors to get behind BUSD,” he added.
It is interesting to note that the crypto exchange giant FTX effectively does the same thing by crediting USD, USDC, TUSD, USDP, BUSD, and HUSD deposits with USD Stablecoins in a 1:1 ratio.
Binance’s action intends to improve the liquidity of stablecoin trading pairs on its exchange. Both users who won’t have to deal with fragmented stablecoin liquidity and Binance, which can increase activity and visibility for its BUSD stablecoin, would potentially benefit from this.
TrueUSD displayed a cooperative stance towards Binance on Twitter by stating:
“Binance will maintain multi-chain $TUSD deposit and withdrawal support on their exchange for all the following token standards.”
Moreover, the co-founder and CEO of Paxos Asia, Rich Teo, also commented on the recent decision by explaining that it will ensure better safety for Binance users.
“Unlike competing stablecoins, BUSD is regulated by the New York State Department of Financial Services (NYDFS), which sets rules and monitors compliance with those rules. ONLY regulated stablecoins do this, setting us apart from stablecoins issued by companies operating with Money Transmitter Licenses (MTLs) that have no oversight of reserves or governance,”
He added.
BUSD, which has the third largest market cap among stablecoins after Tether (USDT) and USD Coin (USDC), is one of the 24 currencies on the NYDFS’s green list. This suggests that licensed entities can use it in the state without requiring further regulatory approval. Some of the other DFS-regulated entities that have stablecoins permitted for issuance are Gemini Dollar (GUSD), Pax Dollar, and Z.com USD (ZUSD).
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
