Binance announced on September 5, 2022, that it will automatically convert user balances of USDC, USDP, and TUSD into BUSD at a 1:1 ratio starting September 29, 2022, at 03:00 UTC. This move aims to consolidate trading liquidity and improve user experience on the platform.
Key Changes and Timeline
Stablecoin Auto-Conversion
- Effective Date: September 29, 2022 (03:00 UTC).
- Affected Stablecoins: USDC, USDP, TUSD.
- Conversion Rate: 1:1 to BUSD.
- Withdrawals: Users can still withdraw funds in the original stablecoins (USDC, USDP, TUSD) at a 1:1 ratio to their BUSD balance.
Trading Pair Adjustments
September 26, 2022 (03:00 UTC):
Binance will delist and suspend the following spot trading pairs:- USDC/BUSD
- TUSD/BUSD
- USDC/USDT
- USDP/USDT
- USDP/BUSD
- TUSD/USDT
September 29, 2022 (03:00 UTC):
Additional pairs to be delisted:- ADA/USDC
- ATOM/USDC
- ETH/USDC
- BTC/USDC
- BNB/USDC
- XRP/USDC
(Full list in original announcement.)
Post-Conversion Details
- Users can view their converted balances under the BUSD-denominated account.
- All pending orders for affected pairs will be canceled automatically.
- Assets can still be traded via BUSD pairs.
Why This Matters
Binance’s decision to consolidate stablecoins into BUSD reflects a strategic effort to:
- Enhance liquidity by reducing fragmentation.
- Simplify trading with a unified stablecoin (BUSD).
- Align with regulatory trends favoring transparency.
👉 Learn more about Binance’s stablecoin policies
Impact on the Stablecoin Market
- USDC (2nd largest stablecoin) loses a major exchange listing, potentially hindering its growth against USDT (Tether).
- BUSD (3rd largest) gains prominence, possibly closing the gap with USDT and USDC.
- Smaller stablecoins like USDP and TUSD face reduced visibility.
Market Cap Comparison (2022)
| Stablecoin | Market Cap (USD) |
|------------|------------------|
| USDT | $68 billion |
| USDC | $52 billion |
| BUSD | $19 billion |
FAQs
1. Will my existing USDC balance disappear after conversion?
No, your USDC will be converted to BUSD at a 1:1 rate. You can still withdraw it as USDC.
2. Can I trade USDC pairs after September 29?
No, all USDC, USDP, and TUSD pairs will be delisted. Use BUSD pairs instead.
3. Does this affect futures or margin trading?
This announcement applies only to spot trading. Check Binance’s updates for derivatives.
4. How does this impact stablecoin competition?
Binance’s move strengthens BUSD while potentially limiting USDC’s market share growth.
5. Is my BUSD balance safe?
Yes, BUSD remains a regulated stablecoin backed 1:1 by reserves.
👉 Explore Binance’s stablecoin FAQs