Binance announced a change that is all set to impact the stablecoin market.
Binance, the largest cryptocurrency exchange in the world, decided to rename its Tether(USDT) market to a combined Stablecoin Market USDⓈ. The move is aimed at supporting more trading pairs with different stablecoins as their bases.
In an announcement made on Nov. 26, the company on its site confirmed that it had decided to rename its market from USDT to USDⓈ.
After their decision, Binance made it clear that USDⓈ is not a new stablecoin, but a symbol of Binance’s latest stablecoin market. Furthermore, Binance will announce the exact pairs that will be either moved or added to this market.
Here’s an excerpt from the announcement:
“Binance has renamed the USDT Market (USDT) to now be a combined Stablecoin Market (USDⓈ). This is to support more trading pairs with different stablecoins offered as a base pair.
We will make a further announcement soon on the exact pairs to be initially moved or added to this market.”
Currently, the stablecoins that are listed on Binance are as follows:
- Paxos Standard Token – listed on September 21
- USD Coin(USDC) – listed on November 15
- TrueUSD (TUSD) – listed on May 16
USD Coin(USDC) is a collaborative coin launched by the blockchain payment company, Circle with the U.S. cryptocurrency exchange Coinbase. USD Coin is entirely collateralized with U.S. dollars; these are stored in accounts that are subject to public reporting of services.
Asiff Hirji, COO and Vice President of Coinbase, said that they had issued, “stablecoins backed 1:1 with the U.S. dollar, completely audited, completely transparent.”
What will happen to Tether?
Binance is striving for updates and further developments for the new stablecoin market. The exchange seems to be planning for something new, but they are yet to make it clear what it is going to be.
Many cryptocurrency traders have been interpreting the move of changing USDT market to bring in all stablecoins under one single platform. Several other explanations are still to be used in the understanding of the situation.
A simpler answer to this will be that Binance is simply offering loyalty to its customers; on what they’ve wanted the most from the exchange: more trading options and services.