Binance’s stablecoin woes, sells USDC for another token

Stablecoin

Comments on the USD Coin ($USDC) stablecoin by the CEO of Coinbase, Brian Armstrong, have sparked interest. In a recent discussion about USDC’s market cap, Armstrong noted that Binance had transferred a portion of its funds from USDC to an alternate stablecoin. Despite this adjustment, the market cap of USDC has held up, showing it might be robust enough to maintain positions.

USDC is the main stablecoin on Coinbase, and the exchange is part of the group that oversees USDC. Previously, Binance also held a sizeable reserve of USDC. However, Armstrong’s comments indicate that Binance has converted a substantial portion of its holdings into different stablecoins.

On-chain data suggests that Binance has recently been converting USDC in exchange for US dollars, leading many to believe that these funds are being directed towards Binance’s newly favoured stablecoin, First Digital USD ($FDUSD). This shift isn’t Binance’s first move away from USDC.

Binance’s search for an alternative stablecoin has been ongoing since the New York Department of Financial Services instructed Paxos to halt the issuance of the dollar-pegged BUSD stablecoin. After this, Binance turned to TrueUSD ($TUSD) for a stablecoin. However, because of a depegging issue for TUSD, Binance has adopted the lesser-known stablecoin, FDUSD.

USDC, once considered a strong contender to the leading stablecoin USDT, has witnessed a significant decline in its market cap over the past year. Starting the year at $44.5 billion, its market cap has contracted by nearly half, resting at $26 billion at the time of writing. This shift in market dynamics underscores the evolving landscape of stablecoins in the cryptocurrency market.

Related Articles

US Shutdowns Lead to Global Decline in Bitcoin ATMs

Countries around the world significantly boosted the monthly growth of BTC ATMs throughout 2024, collectively approaching the 38,000.

Venezuela Bans Crypto Mining to Protect Power Grid

Venezuela’s move follows a recent crackdown involving the confiscation of 2,000 crypto mining devices as part of anti0corruption initiative.

Bitcoin ETFs: Over 600 Firms Pour Billions into Crypto

According to reports Millennium Management is the largest Bitcoin ETF investor with a $1.9 billion investment.

Swiss Leaders Propose Global Crypto Reporting Framework

Switzerland intends to adopt global standards for crypto tax reporting, joining the CARF to improve transparency.

See All