Daniel Jones
WazirX, an Indian exchange, will introduce automatic 1:1 BUSD conversion for USDC, USDP, and TUSD holdings in October, just like Binance. To delist the USD Coin platform and convert the remaining balances into the Binance-backed Binance USD (BUSD) stablecoin, WazirX, India’s top cryptocurrency exchange, has made this decision.
On Monday, WazirX said that it had ceased accepting deposits of USDC as well as other stablecoins including Pax Dollar (USDP) and TrueUSD (TUSD).
The platform would instead provide customers with the BUSD stablecoin, increasing liquidity and capital efficiency, according to the release. According to the company, starting in October, WazirX will automatically convert existing USDC, USDP, and TUSD balances for users into 1:1 BUSD.
When the conversion is finished, users will be able to see their USDC, USDP, and TUSD amounts beneath their account balance in BUSD, according to the exchange. The list of stablecoins that are eligible for automated conversion may be changed by WazirX.
Withdrawals in USDC, USDP, and TUSD will be available on WazirX through Friday. On September 26, the site intends to withdraw stablecoins from spot trading pairs.
According to a WazirX spokeswoman, the company periodically evaluates each digital content to make sure it still adheres to a “high quality.” Several parameters, including trading volume and liquidity, team commitment to a project, responsiveness to repeated due diligence inquiries, and others, are taken into consideration by WazirX, the official said.
“We perform a more thorough evaluation and may potentially remove a coin or token from the list when it no longer satisfies this standard or the industry evolves. According to us, this safeguards all of our users the best,” the representative stated.
WazirX was trading negligible quantities of USDC previous to the announcement, according to data from CoinGecko. As of this writing, Tether is the only USDC trading pair available on WazirX, with $3,400 in daily volumes. As opposed to this, BUSD has two trading pairs on WazirX that are traded against the USDT stablecoin and the Indian rupee, with daily trading volumes of 5,700 and 1,800, respectively. $ and $5,200.
The second-biggest stablecoin by market size is USDC, launched by licensed fintech company Circle and cryptocurrency exchange Coinbase. USDT is the largest stablecoin. Market capitalization for USDC was $50 billion at the time of writing, less than rival stablecoin USDT by more than $17 billion. BUSD has a market worth of $20.6 billion, making it the third-largest stablecoin in terms of value, according to crypto news.
Shortly after Binance stated that it would stop allowing USDC to be traded on its platform, USDC was delisted. Binance announced that it will automatically convert USDC, USDP, and TUSD holdings to BUSD to enhance liquidity, similar to WazirX.
After WazirX, an Indian cryptocurrency exchange came under regulatory scrutiny in August, Binance denied holding any ownership in the company. WazirX had already had more than $8.1 million in funds frozen by India’s Enforcement Directorate as part of an anti-money laundering probe into the company.