Binance Converting $USDC to $BUSD 'Is a Good Thing', Says Circle CEO

Jeremy Allaire, co-founder and CEO of $USDC issuer Circle, thinks the fact that Binance will auto-convert $USDC, $USDP and $TUSD stablecoins to $BUSD "is a good thing" for $USDC. Binance announced earlier that it would auto-convert users' existing balances and new deposits of $USDC, $USDP and $TUSD stablecoins to $BUSD at a 1:1 ratio starting from September 29th at 3am UTC. Although several media platforms, including CoinDesk, don't think the move is helpful for $USDC to overtake $USDT, Evgeny Gaevoy, CEO of crypto market maker Wintermute, holds a different opinion. He tweeted that removing most stablecoin pairs is a good thing, and Binance's decision "is positive for $USDC", as users will still be able to deposit and withdraw $USDC seamlessly on Binance, while not having to convert $USDC to $BUSD manually to trade $BUSD margined perpetual contracts. In addition, Evgeny Gaevoy thinks that Binance's auto- conversion is not good for $USDT. Jeremy Allaire agrees with Evgeny Gaevoy's opinion by retweeting his post and quoting it as "spot on". He wrote on his Twitter that, "Converged dollar books on Binance — now same as on FTX and Coinbase — is a good thing. $USDC utility just increased," before predicting that "this move leads to a gradual net share shift from $USDT to $BUSD and $USDC." Before Binance, rival exchanges like FTX and Coinbase have taken similar approaches. FTX, which doesn't have its own stablecoin, aggregates stablecoin deposits of $USDC, $TUSD, $USDP and $BUSD as USD in its customer's exchange wallets while accounting for $USDT balances separately.