Binance does not suspend trading with Tether after USDC halt

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’.

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.

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.

  • Ivan Brightly

    Ivan Brightly is a leading cryptocurrency analyst and author with over 5 years of experience in the blockchain and digital asset space. He previously served as a senior analyst at a major cryptocurrency hedge fund where he led quantitative research and trading strategy development.

    Ivan holds a Master's degree in Finance from the London School of Economics and a Bachelor's in Computer Science from Stanford University. He is frequently invited to speak at fintech and blockchain conferences worldwide on topics spanning cryptocurrency trading, blockchain technology, and the future of digital assets.

    Ivan's commentary has been featured in several major finance and technology publications including Forbes, Bloomberg, and CoinDesk. He is considered one of the most insightful voices analyzing new developments in the cryptocurrency and blockchain industry.

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