Binance Reintroduces USDC/USDT Trading Pair in Surprising Move at 2 PM UTC
In a surprising development, Binance has reintroduced USDC trading with the USDC/USDT trading pair at 14 PM UTC. This comes after Binance recently announced a temporary halt on the auto-conversion of USDC to BUSD due to market conditions.
According to AZCoin News, Binance cited high inflows and an increasing burden to support the conversion as reasons for the temporary suspension of auto-conversion. The move is seen as a standard risk-management procedure by the exchange, which will continue to monitor the situation.
The relisting of USDC on Binance will likely be welcomed by traders, who have been looking for stablecoin alternatives to USDT in light of concerns around its stability and transparency. USDC is seen as a more transparent and regulated alternative to USDT, and the move by Binance to reintroduce USDC trading will likely be seen as a positive step by traders.
This move by Binance comes after the exchange stopped trading the USDC pair in September 2022 and introduced the BUSD auto-conversion feature for users’ existing balances and new deposits of stablecoins like USDC, USDP, and TUSD at a 1:1 ratio. The move was seen as a way to help traders avoid the volatility associated with converting between stablecoins and fiat currencies.
In light of recent concerns around the stability of USDT, Circle, the company behind USDC, recently revealed that it holds $3.3 billion in USDC reserves at Silicon Valley Bank. This move was seen as an effort to ease concerns around the stability of USDC and its ability to maintain its peg to the US dollar.
The relisting of USDC on Binance, along with Circle’s efforts to increase transparency around its reserves, will likely be seen as positive steps towards building greater trust in stablecoins and the broader cryptocurrency market.
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