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HomeBlockChainBinance offered USDC for one more stablecoin

Binance offered USDC for one more stablecoin

Coinbase CEO Brian Armstrong’s feedback to a query in regards to the USD Coin (USDC) stablecoin throughout the firm’s second-quarter incomes calls raised some eyebrows.

Whereas commenting in the marketplace cap of USDC, Armstrong quipped that Binance moved a few of its funds from USDC into one other stablecoin, however regardless of that, the market cap of USDC has held up.

“Binance truly moved a few of their funds from USDC into one other stablecoin. I believe the information we’ve got within the final six or seven weeks, I imagine, that the USDC market cap is up web of that. And in order that’s an necessary information level.”

USDC is the popular selection of stablecoin on Coinbase, and the crypto alternate is a member of the consortium that owns USDC. Binance crypto alternate as soon as additionally held a major quantity of USDC reserves; nonetheless, primarily based on Armstrong’s feedback, it appears the crypto alternate has transformed a bit of its holdings to different stablecoins.

Cointelegraph reached out to Coinbase and Binance to verify the information however didn’t obtain a response by publication.

Based on on-chain information, Binance has been redeeming USDC for United States {dollars} just lately, with many market observers believing it’s going towards its new stablecoin of selection known as First Digital USD (FDUSD).

Nevertheless, this isn’t Binance’s first conversion of USDC to different stablecoins. In September 2022, the crypto alternate introduced it will auto-convert all user-held USDC on the platform to Binance USD (BUSD), the Binance-branded stablecoin issued by Paxos Belief Firm. On the time, the alternate didn’t reveal whether or not it deliberate to promote or convert its reserves to different stablecoins

Binance has lengthy been on the lookout for new stablecoins after the New York Division of Monetary Providers ordered Paxos to cease issuing the dollar-pegged BUSD stablecoin. Binance later turned to TrueUSD (TUSD) to mitigate its stablecoin wants; nonetheless, TUSD depegged, and its issuance was halted by June 10.

Binance has since turned to a different comparatively unknown stablecoin — FDUSD. The brand new stablecoin issued by a Hong Kong-based firm has gained traction over the previous few weeks after Binance launched a number of buying and selling pairs for the stablecoin, together with zero buying and selling price presents.

Associated: USD-backed stablecoin pilot challenge launched by Pacific island nation of Palau

The rise of FDUSD even garnered consideration from Tether chief know-how officer Paolo Adriono, who famous that Tether (USDT) was pressured down and USDC, its predominant competitor, was additionally closely redeemed.

USDC is the second-largest stablecoin by market share and was as soon as seen because the true competitor to the market chief, USDT. Nevertheless, previously 12 months, USDC’s market cap has shrunk by practically half, falling from $44.5 billion firstly of the 12 months to $26 billion on the time of writing.

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