Compared to Binance, the Indian exchange WazirX will start converting all USDC, USDP, and TUSD balances to BUSD automatically in October at a 1:1 ratio.
WazirX, a significant Indian cryptocurrency exchange, has decided to convert the remaining balances into the Binance-backed Binance USD (BUSD) stablecoin instead of continuing to list USD Coin (USDC) on its platform.
On Monday, WazirX formally said that it had ceased accepting deposits for USDC as well as for other stablecoins including Pax Dollar (USDP) and TrueUSD (TUSD).
The platform will instead provide customers with the BUSD stablecoin to improve liquidity and capital efficiency, according to the statement. On October 5, WazirX will adopt BUSD auto-conversion at a 1:1 ratio for customers’ current balances of USDC, USDP, and TUSD, the company announced.
When the conversion is completed, users will be able to see their USDC, USDP, and TUSD holdings under the BUSD-denominated account balance, according to the exchange. The list of stablecoins that are suitable for auto-conversion may be changed by WazirX.
Until Friday, WazirX will still allow withdrawals in USDC, USDP, and TUSD. On September 26, the company intends to remove the stablecoins from its spot trading pairings.
According to a WazirX representative, the company periodically evaluates each digital asset to make sure it still adheres to the “high degree of standard.”
According to the spokesperson, WazirX takes into account a number of variables, such as trading volume and liquidity, team dedication to a project, responsiveness to repeated due diligence requests, and others.
“We carry out a more thorough evaluation and might delist a coin or token when it no longer satisfies this criterion or the market changes. We think this best safeguards all of our users “said the representative.
Data from CoinGecko shows that prior to the announcement, WazirX was only trading a small amount of USDC.
The daily trading volumes for BUSD’s two trading pairings on WazirX are $5,700 and $5,200, respectively. BUSD is traded against the USDT stablecoin and the Indian rupee.
The second-biggest stablecoin by market value is USDC, launched by the licenced fintech company Circle and the cryptocurrency exchange Coinbase. USDT is the largest stablecoin.
According to CoinGecko, BUSD, the third-largest stablecoin by value, has a market valuation of $20.6 billion.
Perhaps the most latest USDC delisting occurs quite soon after Binance announced plans to stop letting USDC be traded on its platform.
Binance announced that it will automatically convert USDC, USDP, and TUSD holdings into BUSD in order to increase liquidity, similar to WazirX.
Following a regulatory investigation into the Indian cryptocurrency exchange WazirX in August, Binance denied having any equity participation in the latter.
In connection with an investigation into the company for possible money laundering, India’s Directorate of Enforcement earlier froze more than $8.1 million in funds on WazirX.