Cryptocurrency exchange BINANCE will suspend support for three stablecoins — USDC, USDP and TUSD — in order to «enhance liquidity and capital-efficiency.»
The exchange clarified in athat it will automatically convert balances with the above-mentioned assets into its own stablecoin called binance USD (BUSD) on September 29.
Although users won’t be able to trade the stablecoins in pair with main cryptocurrencies (e.g. bitcoin), users will still be able to withdraw USDC, USDP or TUSD at a ratio of 1:1 from their BUSD balances. Binance will also suspend staking, futures and swap services with the stablecoins. It remains unclear what was the reason behind the move.
Earlier in July, Circle CFO, Jeremy Fox-Geen,that the stablecoin issuer plans to go public in the Q4, 2022. It is yet to be seen if Binance’s action will affect Circle’s plans.