2 years ago
On September 5, Binance explained that it planned to driblet a fig of usdc trading pairs and auto-convert circumstantial stablecoin balances into busd by September 29. While the determination was arguable among crypto proponents connected societal media, Circle Financial CEO Jeremy Allaire explained that the alteration “will apt pb to much usdc flowing to Binance.”
Circle’s Jeremy Allaire Thinks Binance’s Forced Stablecoin Conversions Will Likely Lead to More USDC Flowing to the Exchange
Circle’s CEO Jeremy Allaire spoke astir Binance’s recent move to “enhance liquidity and capital-efficiency for users” by removing a fig of stablecoin trading pairs and auto-converting USDC, USDP, and TUSD stablecoins astatine a 1:1 ratio to BUSD. Both Circle and Coinbase are the firms down the Centre consortium, the issuer and custodian of usd coin (USDC) and euro coin (EUROC). Allaire believes the forced conversions person sparked a fig of “misleading headlines and interpretations.”
Allaire further stressed that Binance is “not ending enactment for USDC, and [the] alteration volition apt pb to much USDC flowing to Binance.” The Circle CEO noted that a trading level unilaterally converting existing lawsuit assets would not enactment successful a regulated U.S. market, and helium would not person handled the concern successful this way. Allaire said that Binance is attempting to consolidate dollar liquidity utilizing currency equivalent stables. He further remarked that Binance could not bash the power with tether (USDT), astatine slightest close now, arsenic Allaire thinks it would beryllium excessively disruptive. Allaire opined:
Binance is trying to consolidate dollar liquidity w currency equivalent stables. That’s bully for liquidity and marketplace depth. [Tether] is NOT currency equivalent — not adjacent close. Binance can’t bash this present / yet w [tether] arsenic it would beryllium excessively disruptive fixed existent [tether] liquidity connected Binance.
Trueusd Addresses Binance’s Auto Conversion Move — Paxos Says Decision Is a ‘Positive Step for the Safety of Its Customers’
In summation to Allaire’s commentary connected Tuesday, Trueusd, the issuer of TUSD, tweeted astir Binance’s determination arsenic well. “TUSD volition enactment Binance arsenic ever and person much practice with [the] Binance ecosystem,” the authoritative Trueusd Twitter relationship wrote. “Binance volition support multi-chain TUSD deposit and withdrawal enactment connected their speech for each the pursuing token standards.” For his part, Allaire thinks that with Binance consolidating its dollar books, it volition “now beryllium easier and much charismatic to determination USDC to and from Binance for trading halfway markets.”
Paxos, the issuer of USDP, besides chimed successful connected the speech concerning Binance’s caller determination toward liquidity consolidation. “Binance has made a affirmative measurement for the information of its customers by pushing to enactment [BUSD primarily],” Paxos wrote connected Tuesday. “Unlike competing stablecoins, BUSD is regulated by NYDFS which sets rules and monitors compliance with those rules.”
What bash you deliberation astir Jeremy Allaire, Trueusd, and Paxos addressing the determination Binance made concerning auto-converting circumstantial stablecoin balances? Let america cognize what you deliberation astir this taxable successful the comments conception below.
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