Binance: $1 Billion Conversion From BUSD To Native Crypto
Cryptocurrency exchange Binance has announced plans to convert the remaining $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including Bitcoin (BTC), Binance Coin (BNB), and Ethereum (ETH). The move is part of promoting transparency throughout the industry.
Binance also announced the launch of spot trading pairs for stablecoins, including BNB/TUSD, BTC/TUSD, ETH/TUSD, TUSD/USDT, USDC/USDT, and USDP/USDT. Users can trade these stablecoins directly on the Binance platform through this move.
Given the changes in stable coins and banks, #Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including #BTC, #BNB and ETH. Some fund movements will occur on-chain. Transparency.
— CZ 🔶 Binance (@cz_binance) March 13, 2023
Binance: Auto-Conversion of Stablecoins Discontinued
Binance also announced that it would be discontinuing its auto-conversion feature for stablecoins. This feature allowed users to automatically convert their existing balances and new deposits of USDC, USDP, and TUSD into BUSD at a 1:1 ratio. The company cited greater transparency as the primary reason for discontinuing the auto-conversion feature.
The announcement also noted that some fund movements would occur on-chain. It is likely about moving the remaining $1 billion Industry Recovery Initiative funds from BUSD to native crypto. This move will allow users to track their funds via blockchain and ensure they are safe and secure.
The announcement also discussed the issuers of stablecoins. BUSD is issued by both Binance and Paxos, while USDT is issued solely by Tether. BUSD is rarely used outside Binance, with 92% of its supply being centralized exchanges and over 97% of that supply being on Binance.
Binance also announced a fee promotion for the new trading pairs. Users who trade any new trading pairs during the promotional period will be eligible for a reduced trading fee. This promotion incentivizes users to start trading the new pairs.
Binance’s announcement is a significant step forward in promoting transparency within the crypto industry. By converting the remaining $1 billion Industry Recovery Initiative funds from BUSD to native crypto, users will have greater visibility into their funds. In addition, the launch of spot trading pairs for stablecoins, the discontinuation of auto-conversion, and the fee promotion should further incentivize users to get involved in trading these new pairs.
