Paxos Support Binance’s “Auto-Conversion” To BUSD Feature

Cryptocurrency exchange Paxos has also voiced its support with the consolidation of balances of USDC, USDP and TUSD which will be automatically converted into Binance USD (BUSD). The exchange thinks users will be offered more regulatory security.

As was updated in an earlier Coincu News article, the most popular cryptocurrency exchange Binance has announced that it will convert the stablecoins USD Coin (USDC), Pax Dollar, and True USD into its own stablecoin BUSD. This generated a discussion in the cryptocurrency world as many people began to speculate about the motivations behind this action.

As USDC is issued by Circle and Coinbase, two businesses with North American headquarters, some have speculated that Binance wants to eliminate the chance of part of its funds being frozen by the U.S. government. Others mentioned the exchange’s desire to eliminate competition.

Faced with this information, Paxos said, the measure is better for Binance users since BUSD can give them more regulatory security. The digital asset is supposedly being improved for trading venues while being supervised by the NYDFS.

“BUSD reserves are held by a bankruptcy remote Trust (Paxos) which offers greater consumer protections, setting it apart from all MTL-issued stablecoins.”

This exchange claimed

Before, Allaire claimed that the forced conversion “will likely lead to more USDC flowing to Binance.”

According to Binance, the move is meant to “enhance liquidity and capital-efficiency” at the exchange by consolidating multiple dollar-equivalent cryptocurrencies around one asset.

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