Binance will convert customers’ holdings in USD Coin (USDC), Pax Dollar (USDP), and True USD (TUSD) into its stablecoin (BUSD) on September 29. Binance aims to enhance liquidity and capital efficiency for users, with this move. It can also help to remove redundant trading pairs and optimize the trading experience. 

The centralized exchange will remove spot, future, and margin trading with USDC, USDP, and TUSD pairs too.

However, it will not affect users’ choice of withdrawal. Users will be able to withdraw funds in USDC, USDP, and TUSD at a 1:1 ratio to their BUSD-denominated account balance. 

USDC is issued by Circle and backed by BlackRock, Fidelity, and FTX. It is the second largest stablecoin with over a $50 billion market cap. At the same time, BUSD has a market cap of $19.3 billion and holds the 3rd spot among stablecoins.

Binance wants to avoid a situation like UST collapse or a regulatory outbreak on USDC, USDP, or TUSD. To cement the top exchange spot, streamlining user experience is necessary, and that's what Binance is doing with the latest announcement. 

Practically, the only impact on USDC will be the downfall in trading volume. Because Binance hosts the most trading volume among exchanges. Also, users can not store their funds in USDC making it less attractive to hold in their wallets. 

Although Binance has promised 1:1 withdrawals, the deposits are not much discussed as of now. 

If you hold USDC, you can convert to USDT or BUSD now. Or you can leave it as it is and Binance will convert it for you automatically. This does not undermine the stability of USDC in any way possible, and your funds will not be affected also.

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Binance will convert customers’ holdings in USD Coin (USDC), Pax Dollar (USDP), and True USD (TUSD) into its stablecoin (BUSD) on September 29. Binance aims to enhance liquidity and capital efficiency for users, with this move. It can also help to remove redundant trading pairs and optimize the trading experience. 

The centralized exchange will remove spot, future, and margin trading with USDC, USDP, and TUSD pairs too.

However, it will not affect users’ choice of withdrawal. Users will be able to withdraw funds in USDC, USDP, and TUSD at a 1:1 ratio to their BUSD-denominated account balance. 

USDC is issued by Circle and backed by BlackRock, Fidelity, and FTX. It is the second largest stablecoin with over a $50 billion market cap. At the same time, BUSD has a market cap of $19.3 billion and holds the 3rd spot among stablecoins.

Binance wants to avoid a situation like UST collapse or a regulatory outbreak on USDC, USDP, or TUSD. To cement the top exchange spot, streamlining user experience is necessary, and that's what Binance is doing with the latest announcement. 

Practically, the only impact on USDC will be the downfall in trading volume. Because Binance hosts the most trading volume among exchanges. Also, users can not store their funds in USDC making it less attractive to hold in their wallets. 

Although Binance has promised 1:1 withdrawals, the deposits are not much discussed as of now. 

If you hold USDC, you can convert to USDT or BUSD now. Or you can leave it as it is and Binance will convert it for you automatically. This does not undermine the stability of USDC in any way possible, and your funds will not be affected also.

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