{"id":12773,"date":"2023-08-07T16:08:47","date_gmt":"2023-08-07T16:08:47","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=12773"},"modified":"2023-08-07T16:08:48","modified_gmt":"2023-08-07T16:08:48","slug":"binance-sold-usdc-for-another-stablecoin-coinbase-ceo","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=12773","title":{"rendered":"Binance sold USDC for another stablecoin \u2014 Coinbase CEO"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Coinbase CEO Brian Armstrong\u2019s comments to a question about the USD Coin (USDC) stablecoin during the company\u2019s second-quarter earning calls raised some eyebrows.\u00a0<\/p>\n<p>While commenting on the market cap of USDC, Armstrong quipped that Binance moved some of its funds from USDC into another stablecoin, but despite that, the market cap of USDC has held up.<\/p>\n<p>\u201cBinance actually moved some of their funds from USDC into another stablecoin. I think the data we have in the last six or seven weeks, I believe, that the USDC market cap is up net of that. And so that\u2019s an important data point.\u201d<\/p>\n<p>USDC is the preferred choice of stablecoin on Coinbase, and the crypto exchange is a member of the consortium that owns USDC. Binance crypto exchange once also held a significant amount of USDC reserves; however, based on Armstrong\u2019s comments, it seems the crypto exchange has converted a chunk of its holdings to other stablecoins.<\/p>\n<p>Cointelegraph reached out to Coinbase and Binance to confirm the news but did not receive a response by publication.<\/p>\n<p>According to on-chain data, Binance has been redeeming USDC for United States dollars recently, with many market observers believing it is going toward its new stablecoin of choice called First Digital USD (FDUSD).<\/p>\n<p lang=\"en\" dir=\"ltr\">CZ + Sun have been exiting $USDT via $USDC to get USD. Tether can&#8217;t redeem billions.<\/p>\n<p>New stablecoins emerge. $TUSD denominated volumes went from 0% to 20% in just a few months. #Binance controls 90% of $TUSD supply. This is very simple.<\/p>\n<p>The cartel is turning. Please advise. https:\/\/t.co\/T8PLDNfu2n<\/p>\n<p>\u2014 Not Tiger Global (@NotChaseColeman) August 4, 2023<\/p>\n<p>However, this isn\u2019t Binance\u2019s first conversion of USDC to other stablecoins. In September 2022, the crypto exchange announced it would\u00a0auto-convert all user-held USDC on the platform to Binance USD (BUSD), the Binance-branded stablecoin issued by Paxos Trust Company. At the time, the exchange didn\u2019t reveal whether it planned to sell or convert its reserves to other stablecoins<\/p>\n<p>Binance has long been looking for new stablecoins after the New York Department of Financial Services\u00a0ordered\u00a0Paxos to stop issuing the\u00a0dollar-pegged BUSD stablecoin. Binance later turned to TrueUSD (TUSD) to mitigate its stablecoin needs; however, TUSD depegged, and its issuance was halted\u00a0by\u00a0June 10.<\/p>\n<p>Binance has since turned to another relatively unknown stablecoin \u2014 FDUSD. The new stablecoin issued by a Hong Kong-based company has gained traction over the past few weeks after Binance launched\u00a0several trading pairs for the stablecoin, along with zero trading fee offers. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>USD-backed stablecoin pilot project launched by Pacific island nation of Palau<\/em><\/strong><\/p>\n<p>The rise of FDUSD even garnered attention from Tether chief technology officer Paolo Adriono, who noted that Tether (USDT) was pressured down and USDC, its main competitor, was also heavily redeemed.<\/p>\n<p lang=\"en\" dir=\"ltr\">Isn&#8217;t it interesting that USDt is being pressured down (slightly, within 10bps, just to push market makers to react), and USDc, the main competitor that you would expect being gaining from the situation, is redeemed heavily nevertheless, while suddenly a competitor born 2 days\u2026<\/p>\n<p>\u2014 Paolo Ardoino  (@paoloardoino) August 3, 2023<\/p>\n<p>USDC is the second-largest stablecoin by market share and was once seen as the true competitor to the market leader, USDT. However, in the past year, USDC\u2019s market cap has shrunk by nearly half, falling from $44.5 billion at the start of the year to $26 billion at the time of writing.<\/p>\n<p><em><strong><em>Collect this article as an NFT<\/em><\/strong><em> to preserve this moment in history and show your support for independent journalism in the crypto space.<\/em><\/em><\/p>\n<p><strong><em>Magazine: <\/em><\/strong><strong><em>Yuan stablecoin team arrested, WeChat\u2019s new Bitcoin prices, HK crypto rules: Asia Express<\/em><\/strong><\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/binance-sold-usdc-for-another-stablecoin-coinbase-ceo\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase CEO Brian Armstrong\u2019s comments to a question about the USD Coin (USDC) stablecoin during the company\u2019s second-quarter earning calls raised some eyebrows.\u00a0 While commenting on the market cap of USDC, Armstrong quipped that Binance moved some of its funds from USDC into another stablecoin, but despite that, the market cap of USDC has held [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12774,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-12773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12773"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12773\/revisions"}],"predecessor-version":[{"id":12775,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12773\/revisions\/12775"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/12774"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}