Last Monday, Binance announced that all of its clients' existing funds held in USDC, USDP and TUSD will be automatically converted into Binance's stablecoin (BUSD) effective September 29th.
The platform's native stablecoin is currently the third largest by market cap after the USDC and USDT.
According to Binance, the move aims to enhance the liquidity and capital efficiency of the platform by merging multiple dollar-equivalent cryptocurrencies around a single asset.
The change will result in the cancellation of USDC trading on Binance, and will result in the conversion of all future USDC deposits on Binance to BUSD.
But users can still choose to withdraw their account balance from the platform in USDC, USDP and TUSD cryptocurrency if they choose.
Given these details, Jeremy Allaire told that the forced transfer would likely lead to more USDC flowing into Binance.
He explained:
With dollar ledgers, it will be easier and more attractive to transfer USDC to and from Binance for trading in the underlying markets.”
Unlike BUSD, USDC sees significant volume and usage outside of the Binance trading platform.
As such, Jeremy Allaire believes that the change will help USDC become one of the market's preferred stablecoins for moving funds between centralized and decentralized trading platforms.
The CEO concluded:
I am very confident in the long game we have played and are playing with USDC, and with CIRCLE's role as a neutral player in the market infrastructure.
