Binance Increases USDC Holdings As BUSD’s Market Cap Slides Lower

by | Mar 4, 2023 | Binance, Market, Market News | 0 comments

Binance, one of the most popular cryptocurrency exchanges, and Ingenico, a leading payment processor, have joined forces to provide customers in France convenient options for making payments using digital assets. Binance Pay users will soon be able to make cryptocurrency purchases at two establishments using Ingenico’s POS system: the bar La Carlie and the boutique Miss Opéra.

The release says that more than 50 different digital currencies are welcome in the scheme. At first, merchants will only accept cryptocurrency payments; however, a crypto-to-fiat solution that will allow them to accept fiat currency payments is scheduled for pilot in the second quarter of 2023.

Also Read: Binance Announces Users Can Now Buy Crypto Using Apple Pay and Google Pay

Binance plans to expand its services to additional European nations in the near future. Several European countries have given Binance their blessing, including France, Italy, Lithuania, Spain, Cyprus, Poland, and Sweden. In-store terminals don’t often support cryptocurrency usage without integration. Two French retailers, Le Carlie and Miss Opéra, are going live as part of the experimental programme in France.

On February 20th, the cryptocurrency trading platform revealed that the crypto giant had introduced a paid technology platform card in Brazil in partnership with payment giant Mastercard. Bitcoin, Ether, and BUSD are just a few of the 13 cryptocurrencies that may be used with the card. It will be made accessible to all Binance users in Brazil with a valid national ID.

The new device, which is supposed to be a “all-in-one,” will streamline the onboarding process for both businesses and customers. All Binance users in Brazil with a valid national ID will get access to the card, which will allow them to make purchases and pay bills using a total of 13 different cryptocurrencies.

USDC Holdings

Companies can gain a fresh perspective on the market thanks to this relationship. As the head of Binance Card and Binance Pay, Jonathan Lim, explained, “their market dominance and new payment solutions allow us to speed our access to consumers without having to construct our own terminals or software.”

The company has announced that the Binance card would have a 0.9% fee for each cryptocurrency transaction, as well as up to 8% rewards with cryptocurrency and free ATM withdrawals. The company announced that its Binance card would charge 0.9% for cryptocurrency transactions, provide up to 8% cashback in cryptocurrency, and provide free ATM withdrawals.

Martin Lee, a data journalist for Nansen, reports that USDC holdings on Binance have increased week over week. Lee tweeted on Tuesday, “Interesting to watch the number of USDC on Binance climb so much since the BUSD news.” Lee went on to say that in the past week, USDC on Binance increased by $1.5 billion. Unless its market capitalization falls below DAI’s $5 billion, the Paxos-managed stablecoin will remain the third largest stablecoin.

Once a major player in the top ten crypto assets by market capitalization, BUSD is dangerously close to falling out of the top 10 altogether. He said that, “considering that you can’t trade using USDC” on Binance, he would have anticipated a greater growth in the supply of tether (USDT) than USDC.

The Nansen analyst also pointed out that the USDC balance in Binance’s main wallet is at an all-time high of $1.8 billion today, the highest level seen in the past 90 days. A total of $1.821 billion USDC is stored in Binance’s wallet as of 2:00 PM (ET) on February 21, 2023. Binance stopped supporting USD Coin (USDC) trading pairs on September 5, 2022, and converted all customer USDC holdings to BUSD. As of today, the quantity of BUSD that have been taken from circulation since Paxos said it will no longer mint BUSD stands at 3.55 billion, according to reports in the news.

Also Read: Binance News: Crypto Exchange Has Good News For TRON Users

Binance stores just over 100 million Tether (USDT) in the same wallet, however Nansen’s portfolio viewer only displays ERC20-based balances. Tokens worth 5.34 million DAI and 79.24 million TUSD are also stored in the Binance wallet. Two weeks after Binance’s decision, Wazirx followed suit by automatically converting USDC and other stablecoin balances to BUSD.

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