The co-founder and CEO of Circle, Jeremy Allaire thinks that Binance’s decision to no longer support USDC would only increase the utility of USDC and lead to more USDC flowing to Binance.
In a long Twitter thread, the CEO detailed his views on the matter.
He also said that with “consolidated dollar books, it will now be easier and more attractive to move USDC to and from Binance for trading core markets.”
Moreover, the CEO pointed out that since the usage of BUSD (native token of Binance) outside of Binance is limited, he believes that this move will help USDC become the market’s preferred stablecoin rail for moving funds between centralized and decentralized exchanges.
He writes, “I am very confident in the long game we have played and are playing w USDC, and with Circle’s role as a NEUTRAL market infrastructure player.”
Binance announced yesterday that from September 29, existing and new USDC, TUSD and USDP deposits in Binance accounts will be automatically converted to BUSD.
However, users will still be able to withdraw their BUSD account balance from the exchange in either USDC, USDP, and TUSD if they so choose.
USDC is currently the second largest stablecoin by market cap at $51 billion. USDT, the largest stablecoin by market cap ($67 billion) will remain accessible on Binance.
Allaire, also believes that there are two reasons for USDT to be still remaining accessible on Binance. The first is that a transition from USDT to BUSD would be too disruptive for Binance given “current USDT liquidity on Binance”.
The second reason he says is that USDT is “not even close” to qualifying as a cash-equivalent asset.
USDT issuer Tether has been frequently subjected to frequent criticisms for holding unreliable reserve assets to back its stablecoins.
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