Just like Binance, India-based exchange WazirX will start implementing BUSD auto-conversion for balances of USDP, USDC, and TUSD at a 1:1 ratio in October. The major Indian crypto exchange has opted to delist the USD Coin (USDC) from its platform and change the remaining balances into the Binance-backed stablecoin Binance USD (BUSD).
WazirX officially announced on September 19, 2022, that it has stopped deposits of USDC together with other stablecoins like TrueUSD (TUSD) and Pax dollar (USDP).
Based on the announcement, the platform will instead offer the Binance USD stablecoin to boost liquidity and capital efficiency for users. WazirX will implement BUSD auto-conversion for users’ existing balances of USDP, USDC, and TUSD at a 1:1 ratio on October 5, the company stated.
The announcement noted:
“Users will be able to view their USDC, USDP and TUSD balances under the BUSD-denominated account balance when the conversion is complete. WazirX may amend the list of stablecoins eligible for auto-conversion.”
Withdrawals of USDP, USDC, and TUSD will still be available on WazirX till September 23. The platform then aims to delist the stablecoins from its spot trading pairs on September 26.
Based on the data acquired from CoinGecko, WazirX was trading an insignificant amount of USDC before the announcement. At the time of publication, the only USDC trading pair listed on WazirX is USDC trading against Tether (USDT), with $3,400 in daily volumes.
On the contrary, BUSD has two trading pairs on WazirX, trading against the USDT stablecoin and the Indian Rupee, with daily trading volumes reaching $5,700 and $5,200, respectively. WazirX never responded immediately to the reporter’s requests for comment.
Unveiled by the regulated fintech company Circle and the Coinbase crypto exchange, USDC is the second-biggest stablecoin by market capitalization after Tether USDT. At the time of publication, USDC’s market capitalization amounts to $50 billion, or down over $17 billion from the rival stablecoin USDT.
Binance USD, the third-biggest stablecoin by value, has a market capitalization of $20.6 billion, based on CoinGecko.
The latest delisting of USDC from WazirX comes moments after Binance confirmed plans to remove USDC as a tradable asset from its platform. Just like WazirX, Binance stated that it will auto-change USDP, USDC, and TrueUSD balances into the BUSD stablecoin to increase liquidity.
In August 2022, Binance denied any equity ownership in WazirX after the Indian crypto exchange was subjected to regulatory scrutiny. Previously, India’s Directorate of Enforcement froze over $8.1 million in funds on WazirX as part of an Anti-Money laundering investigation against the company.
