# Binance to convert users’ USD Coin into its own stablecoin Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-06 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Binance to Convert Stablecoins to Binance USD Automatically Meta Description: Binance, the world's largest crypto exchange, will convert USD Coin, Pax Dollar, and True USD to its stablecoin, Binance USD, to enhance liquidity and URL: https://financedigest.com/binance-to-convert-users-usd-coin-into-its-own-stablecoinhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-05t215422z2lynxmpei840pgrtroptp4fintech-crypto-binance-doj-1736815282897-compressed.jpg) By Shivani Tanna and Elizabeth Howcroft (Reuters) -Binance, the world’s largest crypto exchange, said on Monday it will automatically convert user balances and new deposits of the stablecoins USD Coin, Pax Dollar and True USD into its own stablecoin, Binance USD. The move is intended to enhance liquidity and capital efficiency for users, Binance said in a statement https://www.binance.com/en/support/announcement/e62f703604a94538a1f1bc803b2d579f. Stablecoins are a type of cryptocurrency designed to maintain a constant value, for example through a 1:1 U.S. dollar peg. They play a crucial role in facilitating crypto trading, and allow [traders to store idle crypto cash without converting it back](https://www.financedigest.com/analysis-u-s-retail-traders-pile-back-into-options-as-meme-stock-mania-flares.html "Analysis-U.S. retail traders pile back into options as meme-stock mania flares") into fiat currency. Binance said it will stop trading on [spot pairs which include USD Coin](https://www.financedigest.com/counterfeit-coins-would-you-be-able-to-spot-a-fake-pound-coin.html "Counterfeit coins: Would you be able to spot a fake pound coin?"), Pax Dollar and True USD, although users will still be able to withdraw funds in the form of these stablecoins. The conversion of [users’ holdings](https://www.financedigest.com/power-generation-sector-to-remain-largest-end-user-of-industrial-engines-persistence-market-research.html "Double Acting Hydraulic Cylinders to Hold Close to 50% Market Share: Persistence Market Research") will take place on Sept. 29, Binance said. USD Coin (USDC) is issued by U.S. firm Circle and is the world’s second-largest stablecoin, with a market capitalisation of $51.8 billion, according to [crypto data](https://www.financedigest.com/exclusive-binance-moved-346-million-for-seized-crypto-exchange-bitzlato-data-show.html "Exclusive-Binance moved 6 million for seized crypto exchange Bitzlato, data show") provider CoinGecko. Binance’s stablecoin (BUSD) is [valued at about $19.4 billion](https://www.financedigest.com/sulphur-recovery-technology-market-value-to-grow-by-almost-1-2-billion-during-2021-2031.html "Sulphur Recovery Technology Market Value to Grow by Almost .2 Billion During 2021-2031"), according to CoinGecko. USDC products affected include [saving accounts](https://www.financedigest.com/digitised-prize-linked-savings-accounts-how-it-can-encourage-better-financial-habits.html "Digitised prize-linked savings accounts: How it can encourage better financial habits"), DeFi staking subscriptions and crypto loans, which will be closed and liquidated on Sept. 23, Binance said. Jeremy Allaire, the CEO of Circle, said in a tweet https://twitter.com/jerallaire/status/1566921483003334657 that “converged [dollar books](https://www.financedigest.com/ea-lowers-bookings-expectation-on-strong-dollar-gaming-slowdown.html "EA lowers bookings expectation on strong dollar, gaming slowdown") on Binance \[…\] is a good thing. USDC utility just increased.” In another tweet https://twitter.com/jerallaire/status/1566922064119971840, Allaire said he predicts the [move will lead to USD Coin and Binance](https://www.financedigest.com/exclusive-crypto-giant-binance-moved-400-million-from-u-s-partner-to-firm-managed-by-ceo-zhao.html "Exclusive-Crypto giant Binance moved 0 million from U.S. partner to firm managed by CEO Zhao") USD gaining market share from the world’s largest stablecoin, Tether. (Reporting by Shivani Tanna in Bengaluru; Editing by Leslie Adler and Louise Heavens) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---