last night,Binance officialThe announcement stated that on September 29, the existing USDC, USDP, TUSD stablecoin balances and new recharges of platform users will be automatically converted to BUSD at a ratio of 1:1.

As soon as the news came out, it triggered heated discussions in the market. Some people believe that, as the world's largest encryption platform, Binance's move is to resist compliant stablecoins such as USDC, which may imply that the platform will embark on a road of departure from supervision. But that's not the case.

According to the announcement, Binance will continue to support the recharge of USDC, USDP, and TUSD compliant stablecoins, but it will be converted to BUSD for related transactions; moreover, users can withdraw BUSD assets into USDC, USDP, and TUSD assets at any time when withdrawing , the ratio is 1:1.The deposit and withdrawal channels are always open normally, and users can freely choose to transfer in and out,Therefore there is no talk of boycott。

At the same time, although Binance plans to delist USDC, USDP, and TUSD-related trading pairs, to a certain extentImproved overall liquidity in bear markets. Evgeny Gaevoy, founder and CEO of Wintermute, said that removing most stablecoins is a good thing. Liquidity does not have to be allocated among multiple stablecoins, which can make the work of market makers easier and the overall market liquidity is higher. .

From the perspective of users, Binance directly converts assets such as USDC into BUSD,It simplifies the transaction operation and saves a certain exchange fee, which is actually more friendly。(For example, there are only 18 USDC trading pairs in the Binance spot market. Users who have deposited USDC and want to buy tokens other than 18 trading pairs need an additional step to convert USDC to BUSD or USDT.)

Of course, from the perspective of Binance, the interest demands are relatively clear - to expand the market share of its own BUSD.

BUSD is a 1:1 USD-backed stablecoin issued by Binance and Paxos, approved by the New York State Department of Financial Services (NYDFS) (Paxos is also the stablecoin USDP issuer). Although it is the same representative of "compliant stable currency" as USDC and is backed by the top trading platforms (Coinbase and Binance) in the market, BUSD was born late and has relatively low market recognition, which has also led to its low market share , and the gap between USDC and USDC - the current market value of USDC is 51.7 billion US dollars, and BUSD is only 19.4 billion US dollars.

In addition, Coinbase has been strongly supporting USDC. The platform only supports the deposit and withdrawal of three stablecoin assets: USDC, USDT, and DAI (only one trading pair), which also provides a reference for Binance. As the world's largest trading platform, Binance controls traffic and users. Instead of continuing to make wedding dresses for USDC, it is better to support BUSD. In addition, USDC has recently been affected by "Tornado Cash" sanctions, and Binance canceled its related trading pairs. Expanding its own market influence is also the proper meaning of the question. At the same time, Binance is also one of the few exchanges with the strength (user base, self-owned stablecoin layout and usage scenarios) to do this.

However, there is also cooperation in competition, and Binance’s new policy deeply binds other compliant stablecoins to BUSD.

In the official announcement, BUSD will be exchanged 1:1 with other three compliant stablecoins, and the upper limit setting is not clearly stated. This also means that all compliant stablecoins charged to Binance in the future will be used as asset reserves for BUSD. In addition to the original issuance channel of BUSD (mortgage fiat currency assets), other types of safe and reliable reserves have been supplemented, and the upper limit of additional issuance has been broadened.

In addition, with the grouping of compliant stablecoins, the market space for "weakly compliant stablecoins" USDT will be further squeezed.From the perspective of convenient exchange, Tether has a redemption cost (a 5% fee is charged for redemption), and minting/recalling needs to go through T+1, while compliant stablecoins such as BUSD can be exchanged and redeemed in real time and efficiently. The latter has the advantage protrude.

"This is not USDC "delisting", but another big step for Tether to lose its advantage over the stablecoins in the United States. Jeremy Allaire, CEO of USDC issuer Circle, said that Binance's actions may cause the net market share of stablecoins to gradually shift from USDT to BUSD and USDC.

From a more systemic point of view, Crypto may be standing at a fork in the road between embracing compliance and insisting on decentralization, from Tornado Cash toMakerDAOWhen it comes to BUSD, the encryption market will become more and more divided, and the camps under the two ideologies will gradually drift apart.