Last Updated: 6 September 2022
Binance will not stop trading Tether USDT. The world’s largest exchange announced this after questions from Cointelegraph.
Binance leaves Tether trading intact
The questions arose because Binance suddenly suspended trading in stablecoin USDC and two other stablecoins USDP Stablecoin (USDP) and TrueUSD (TUSD).
All users who still hold the three stablecoins on 29 September will have their stablecoin balances automatically exchanged to BUSD, the stablecoin of Binance. This will happen at a ratio of 1: 1 for a period of 24 hours.
In a statement, Binance said it was taking the measure to improve liquidity and user experience. But there is no question of suspending Tether USDT, the largest stablecoin on the market.
A Binance spokesperson told Cointelegraph that this could change in the future. However, the measure to exchange USDC into BUSD is ‘not temporary’ and ‘will continue’.
Not delist. You can still deposit and withdraw USDC. Just merging all liquidity into one pair. Best price, lowest slippage for users.
— CZ 🔶 Binance (@cz_binance) September 5, 2022
Binance will therefore also remove the long list of trading pairs with these three stablecoins, with the pairs mainly switching to BUSD. Other products such as savings or loans linked to USDC will also be discontinued.
Analyst Alex Svanevik sees that the amount of USDC on the trading platform has shrunk considerably.
Binance has less than $1B USDC now. pic.twitter.com/Sx4Wjr43V5
— Alex Svanevik 🐧 (@ASvanevik) September 6, 2022
By comparison, Binance has a whopping $4.99 billion in USDT, more than any other exchange in the world. Also because many derivatives pairs are linked to USDT.