JPMorgan: "Binance's decision to convert USDC to BUSD raises the importance of USDT for crypto trading"

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Analysts at financial giant JPMorgan believe that the decision by the world’s largest crypto exchange could make Tether and its USDT asset an even more important element of the crypto asset trading system.

Binance is going to stop supporting stablecoins USDC, USDP and TUSD.

“This decision will increase the importance of Tetherin the stablecoin universe, freeing it from competition from USDC. Tether's importance is determined not only by its share of market capitalization, but also depends on its use, in particular in trading, says the JPMorgan report.

Banking analysts note that Tetheroperates on eleven different blockchains, compared to USDC's eight, and the annual daily trading volume is much higher than not only USDC, but even Bitcoin and Ether. The report states that Tether's average daily trading volume is ten times that of USDC, so Binance's decision will undoubtedly benefit Tether.

JPMorgan analysts believe that Tether's importance increases after the September 29 conversion. The bank notes that BUSD will gain greater importance, anchored by a new fee structure.

At the beginning of September, the Binance cryptocurrency exchange made
statement that to improve efficiencyservicing users, it will organize the list of low-liquid stablecoins by automatically converting deposits in USDC, USDP and TUSD into BinanceUSD (BUSD). Binance announced that on September 29, the above stablecoins will be converted into the BUSD stablecoin at a 1:1 ratio within 24 hours.