SBF: Binance converts USDC to BUSD, starting the second stablecoin war

2022-10-23 22:13:30

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ChainCatcher news, regarding Binance's previous conversion of USDC to BUSD, today BUSD's market share reached an all-time high, with a supply close to $22 billion. FTX founder SBF stated that this change by Binance triggered a change in supply. Thus began the second great stablecoin war (the first ended around 2018, with USDC and USDT defeating TUSD/GUSD/USDP). The second stablecoin war is different in that:

Positive interest rates, stablecoins have more income;
So far, stablecoin issuers have learned the core lesson: never stop redemptions, or the stablecoin will no longer be stable. Currently, we may be the largest non-aligned player in the stablecoin ecosystem. Bybit, various blockchains, tradfi, and market makers are also in the same situation.

According to previous news, as per the official announcement, in order to improve user liquidity and capital efficiency, Binance will automatically convert users' existing USDC, USDP, and TUSD stablecoin balances and new deposits to BUSD at a 1:1 ratio. (source link)

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Binance BUSD stablecoin

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