Automatic conversion of Binance USDC, USDP and TUSD in user balances to BUSD at a ratio of 1:1 will result in a decrease in USDT’s market share. Evgeny Gaevoy, CEO and founder of market maker Wintermute, came to this conclusion.

In USDC news. I found most titles very misleading. My 5 cents:

— wishful sarcastic (@EvgenyGaevoy) September 5, 2022

According to the expert, the initiative will lead to the concentration of liquidity in a single stablecoin, not in different stablecoins. This will facilitate the work of active market participants.

USDC, USDP and TUSD will benefit as the bitcoin exchange will allow withdrawals in the same stablecoins deposited.

Previously, you had to convert USDС/USDP/TUSD to BUSD/USDT for margin trading. After the implementation of the initiative, the need for this will disappear. Gaevoy stressed that “Auto-conversion” will improve customer interactions and maintain (or even increase) the usefulness of USDC.

USDT will be on the side. Many will surely wonder what makes it so “special”. CEO Wintermute suggested that in the long run, liquidity in USDT and non-currency pairs will increase.

Tether will continue to lose ground until it improves the issuance/redemption process. Now this is applied the next day unlike USDC/USDP/TUSD where the transaction is almost instantaneous.

Silvergate and Signature are unlikely to serve the USDT issuer due to the negative stance of US regulators. The expert explained that these are the two organizations that receive the most fiat dollars 24/7.

Market makers do not need Binance to convert BUSD to USDC and vice versa “within seconds”. This opportunity will be available to everyone. FTX has been doing this kind of thing “for ages”.

Jeremy Allaire, CEO of USDC’s co-issuer Circle, conceded that Gaevoy was right. It confirmed the growth in stablecoin usage thanks to the Binance initiative.

Useful perspective @wtermute_t , at which point. Converged dollar ledgers on Binance – as in FTX and Coinbase now – are a good thing. The USDC utility has increased. https://t.co/QWfMx7f1cZ

— Jeremy Allaire (@jerellaire) September 5, 2022

A Binance spokesperson told Cointelegraph that there are no plans to “auto-convert” USDT to BUSD, but did not rule out that such an option would appear in the future.

The platform employee announced that the initiative related to stablecoins will continue.

“This is not a delisting. You can deposit and withdraw USDC. Just combining all the liquidity in a single pair. Better price for users, lowest slip”, – Announced Changpeng Zhao, CEO of Binance.

It’s not unlisted. You can still deposit and withdraw USDC. Just combining all the liquidity in a single pair. Best price, lowest slip for users.

— CZ 🔶 Binance (@cz_binance) September 5, 2022

Alex Svanevik, head of the Nansen analytics platform, pointed out that the number of USDC tokens owned by Binance has fallen by more than half, below $1 billion.

Binance currently has less than $1 billion USDC. pic.twitter.com/Sx4Wjr43V5

— Alex Svanevik 🐧 (@ASvanevik) 6 September 2022

As a reminder, starting September 29, Binance will automatically start converting some stablecoins from user balances to BUSD.

In July, analysts at Arcane Research predicted that USDC would surpass USDT in terms of capitalization in the fall.

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