India-based cryptocurrency exchange WazirX plans to remove USD Coin (USDC) from its platform and convert remaining balances to Binance-backed Binance USD (BUSD) stablecoin.
WazirX announced on Monday that it is stopping USDC deposits along with other stablecoins such as Pax dollar (USDP) and TrueUSD (TUSD). announced.
According to the announcement, the platform will offer BUSD stablecoin instead of USDC to increase liquidity and capital efficiency for users. The firm said that WazirX will apply 1:1 automatic conversion to BUSD for users’ existing USDC, USDP and TUSD balances on October 5.
In its announcement, the exchange said, “Users will be able to see their USDC, USDP and TUSD balances under their account balance in BUSD when the conversion is complete. WazirX may change the list of stablecoins eligible for automatic conversion,” he said.
USDC, USDP and TUSD withdrawals on WazirX will remain valid until Friday. The platform then plans to remove stablecoins from spot trading pairs on September 26.
According to data from CoinGecko, WazirX was trading insignificant amounts of USDC prior to the announcement. At the time of writing, on WazirX listed The only USDC trading pair appears to be USDC trading against Tether (USDT) at $3,400 in daily volumes.
BUSD has two trading pairs on WazirX against the USDT stablecoin and Indian rupee, with daily trading volumes of $5,700 and $5,200 respectively.
WazirX has yet to respond to Cointelegraph’s request for comment at the time of writing.
Launched by regulated fintech firm Circle and Coinbase crypto exchange, USDC is the second-largest stablecoin by market cap after Tether USDT. At the time of writing, USDC has a market value of $50 billion. around. Binance USD, the third largest stablecoin by value, has a market cap of $20.6 billion, according to CoinGecko.
The withdrawal of USDC from WazirX came shortly after Binance announced its plans to remove USDC from its platform as a tradable asset. Similar to WazirX, Binance also announced that it will automatically convert USDC, USDP and TrueUSD balances to BUSD stablecoins to increase liquidity.
Binance also announced in August that it does not hold any stake in WazirX after the Indian crypto exchange came under regulatory scrutiny. India’s Enforcement Directorate had previously frozen more than $8.1 million in funds in WazirX as part of an Anti-Money Laundering investigation against the firm.