On Monday, September 5, Binance announced the launch of its BUSD auto-conversion action, which automatically converts USDC, USDP, and TUSD stablecoins to Binance’s BUSD.
Pending that time, it is possible to manually convert balances to BUSD with Binance Convert until auto-conversion occurs for those who choose to do so.
Users can still withdraw funds at a 1:1 ratio in each of those three stablecoins so that it won’t compromise their withdrawal preferences. According to the press release, users will notice the converted amount on their accounts one day after the stablecoins’ current balances are automatically changed to BUSD on September 29.
In addition, users are strongly encouraged to cancel their holdings before the suspension of margin trading to prevent any possible losses.
With effect from 2022-09-29 03:00 (UTC), users will trade with a consolidated BUSD balance on the Binance Platform that represents their balances of these four stablecoins (BUSD, USDC, USDP, and TUSD) following conversion.
Existing USDC, USDP, and TUSD balances in user accounts will be automatically changed to BUSD. Within 24 hours, all accounts will reflect the converted balance.
Here is the main implication of this announcement for spot trading:
“All pending trade orders will be automatically removed after trading ceases in each respective trading pair. Users can then trade the assets in the respective BUSD trading pairs. “
On Binance, These Pairs Would No Longer Exist
The following spot trading pairs will no longer be available on Binance at 3:00 (UTC) on September 26, 2022: USDC/BUSD, USDC/USDT, USDP/BUSD, USDP/USDT, and TUSD/BUSD, TUSD/USDT.
The following spot trading pairs are those that Binance will also remove on September 29, 03:00 (UTC): ADA/USDC, ATOM/USDC, AUD/USDC, BCH/USDC, BNB/USDC, BTC/USDC, BTTC/USDC, EOS/USDC, ETH/USDC, LINK/USDC, LTC/USDC, SOL/USDC, TRX/USDC.
Users’ USDC, USDP, and TUSD balances will be visible under the BUSD-denominated account balance when the conversion is finished.
After trading in each trading pair is over, all open trade orders will be immediately closed. Users may then trade the assets in the corresponding BUSD trading pairs.
Users are strongly recommended to refrain from adding positions during the conversion period to prevent possible losses. During this time, Binance is not responsible for any losses that may result from the conversion of money into new positions.
Activities That Would Be Suspended On the Binance Platform
According to the blog, Binance will stop selling USDC subscriptions for Flexible Savings and DeFi Staking at 3:00 (UTC) on September 23, 2022. Any USDC subscribed to both services will be automatically redeemed and transferred into customers’ spot wallets on the same day.
The USDC/USDT liquidity pool will shut, and all user assets will be immediately redeemed to respective spot wallets via Binance Liquid Swap at 03:30 on September 23, 2022. (UTC). Before the automated redemption, users can manually redeem their assets.
At 2022-09-07 03:00, USDC will no longer be a borrowable or collateral asset for Binance Crypto Loans (UTC).
Binance says that it has “introduced the stablecoin Auto-Conversion solution” to “provide greater trading liquidity and a better user experience.“
