Binance Adds Auto-Convert Deposits to BUSD for Several Popular Stablecoins

With the BUSD Auto-Conversion, features related to USDC, USDP, and TUSD including spot trading, futures trading, margin trading, lending, and savings, will be consolidated.

Binance introduces BUSD Auto-Conversion

In an announcement on September 5, Binance informed its users of the introduction of BUSD Auto-Conversion. According to the blog post, the cryptocurrency exchange will automatically convert users’ existing balances and new deposits of stablecoins such as USDCPax Dollar (USDP), and TrueUSD (TUSD) into its Binance USD(BUSD). This conversion will be done at a 1:1 ratio beginning on September 29.

According to Binance, implementing this will “enhance liquidity and capital-efficiency for users.” FTX, the cryptocurrency exchange owned by Sam Bankman-Fried, implemented a similar feature in January. Its implementation by Binance is an indication of confidence in the reserves backing BUSD, USDC, USDP ad TUSD.

Binance stated further that the automatic conversion of the supported stablecoins into BUSD will take place at 3:00 UTC on September 29, and users will be able to see the converted balance on their accounts within a 24-hour period.

Users who intend to convert their USDC, USDP or TUSD balances to BUSD at a 1:1 ratio before the Auto-Conversion are allowed to do so manually on Binance Convert between 3:00 UTC on September 26 and the launch of the auto-conversion feature.

Support for the coins subject to auto-conversion will continue. Upon completion of auto-conversion, Binance users can withdraw USDC, USDP, or TUSD at a ratio of 1:1 from their BUSD balances.

One impact on trading will be the consolidation of order books. Since affected stablecoins will essentially be treated as fungible within the Binance platform, liquidity from affected pairs will now be concentrated into BUSD pairs.

Binance order books to be removed from September 26:

USDC/BUSD

USDC/USDT

USDP/BUSD

USDP/USDT

TUSD/BUSD

TUSD/USDT

Binance order books to be removed from September 29:

ADA/USDC

ATOM/USDC

AUD/USDC

BCH/USDC

BNB/USDC

BTC/USDC

BTTC/USDC

EOS/USDC

ETH/USDC

LINK/USDC

LTC/USDC

SOL/USDC

TRX/USDC

WIN/USDC

XRP/USDC

ZEC/USDC

BNB/USDP

BTC/USDP

ETH/USDP

ADA/TUSD

BNB/TUSD

BTC/TUSD

ETH/TUSD

TRX/TUSD

XRP/TUSD

As regards Futures Trading, Binance warned that it would cease support for USDC as a margin asset under Multi Asset Mode or Portfolio Margin Program from September 7. It added further that its Binance USDⓈ-M Futures Wallet would automatically convert USDC assets to BUSD when auto-conversion starts on September 29.

Margin trading will also be affected. Binance will no longer offer margin pairs subject to auto-conversion from September 7. From September 23, any open margin positions will be closed and liquidated.

As regards cryptocurrency loans, Binance added that USDC would be removed as a borrowable asset and as a collateral asset from September 7. The exchange will close and liquidate users’ USDC loan orders, including orders with USDC as borrowable and USDC as collateral, on September 23.

What is Binance:

Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.

Where to find Binance:

Website | Twitter | Discord | Telegram |

Source : bsc.news

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