March 28, 2024

Converting Binance USDC to BUSD is the “Second Great Stablecoin War”

FTX CEO Sam Bankman-Fried said that Binance's USDC clients' conversion to BUSD is fueling a "Secondgreat stablecoin war.

The remark was made in response to a tweet claiming that the capitalization of Binance's stablecoin (BUSD) has skyrocketed to more than $20 billion this month.

In addition, the FTX CEO recalled an incident in 2018 when stablecoins fought for dominance and when USDC and USDT supplanted TUSD, GUSD and USDP.

Convert Binance USDC to BUSD — “the second great stablecoin war”

Bankman-Fried also noted that the difference between the first stablecoin war and the current one is favorable interest rates, which result in more income from stablecoins.

It will be interesting to see what comes out of the non-fiat stablecoin space after Luna and DAI-holding-USDC,” the top manager added.

BUSD remains the third largest stablecoinafter USDT and USDC with a market capitalization of over $21 billion. The implication is that the Binance stablecoin supply has an all-time high share of 15.48% of the total stablecoin market.

Let us recall that at the beginning of last month the teamThe largest crypto exchange Binance announced that it will automatically convert clients' stablecoins USDC, USDP and TUSD into the native stablecoin Binance BUSD. The rule took effect on September 29, 2022.

It was stated that this measure was aimed at "increasing the liquidity and efficiency of the use of users' capital."

News and notes about cryptocurrency and traditional financial markets, politics and technologies in Telegram.