“We have seen an increase in withdrawals at USDC,” Chinese-Canadian Changpeng Zhao wrote on Twitter. Stablecoin USDC belongs to the so-called conventional stablecoins, which are backed by real and highly liquid equivalents of cash or dollars.
On USDC, we have seen an increase in withdrawals. However, the channel to trade from PAX/BUSD to USDC requires going through a bank in New York in USD. Banks won’t be open for a few more hours. We expect the situation to recover when the banks open. 1/2
— CZ 🔶 Binance (@cz_binance) December 13, 2022
Exchanging the USDC stablecoin for Paxos Standard and Binance USD tokens requires interested parties to secure traditional dollars at a New York bank, Zhao added. “The banks will not be open for a few more hours. We expect a return to normality as the banks open,” she added. In New York it is six hours less than in central Europe.
If no financial derivatives enter the transaction, the exchange of stablecoins for real dollars is one-for-one, the head of the cryptocurrency exchange noted. In the future, he said, Binance will try to establish more liquid channels for the purpose of trading stablecoins.
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Binance said in another tweet that it is conducting a token exchange with the participation of USDC. In that case, digital token holders trade their coins for cryptocurrency, mainly through different blockchains.
Exchange Binance said in September that it will automatically convert user balances and new deposits in USD Coin and other Pax Dollar and True USD stablecoins into its own Binance USD stablecoins.
