WazirX and new problems for the USDC stablecoin
WazirX and new problems for the USDC stablecoin
Stable Coin

WazirX and new problems for the USDC stablecoin

By Amelia Tomasicchio - 20 Sep 2022

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Indian exchange WazirX has decided to delist USDC, USDP and TUSD stablecoins starting on 26 September, following the decision previously announced also by Binance.

In fact, with a message similar to that of the US exchange, WazirX announced the delisting, giving as its reason the lack of liquidity of these assets.

These are the words written in the announcement:

“To enhance liquidity and capital efficiency for users, WazirX will implement BUSD Auto-Conversion for users’ existing balances of USDC, USDP, and TUSD stablecoins at a 1:1 ratio.”

Similar to Binance, the three stablecoins will all be converted to BUSD. 

The only other stablecoin to remain listed is USDT, or Tether, although WazirX in the announcement goes on to say that it “may amend the list of stablecoins eligible for auto-conversion.” thus leaving open the possibility that other stablecoins will also be delisted.

Even in the case of Binance, a spokesperson for it at the time stated

“We have no plans to auto-convert USDT to BUSD for the time being, but that could change.”

WazirX like Binance versus USDC

What continues to be surprising about this decision, first by Binance and then now also by WazirX, is the fierce targeting of one of the most regulated stablecoins, Circle’s USDC.

USDP and TUSD certainly have limited liquidity, especially after delisting from Binance, but USDC has always been Tether’s main competitor, and its delisting seems to continue to be an attempt to eliminate inconvenient competition, since liquidity certainly was not an issue affecting USDC.

Even now, from $52 billion, USDC has remained fairly stable after Binance’s delisting, with a current market cap of $50 billion.

Why did WazirX follow in Binance’s footsteps?

Moreover, the reason why WazirX decided to delist USDC, USDP, and TUSD is quickly stated: the exchange has been collaborating with Binance since 2019, although lately the two platforms seemed to be at odds over this partnership, as stated in a series of tweets by the two companies. 

But now Binance and WazirX seem to be back on good terms, or at least have agreed on the delisting of the aforementioned stablecoins.

The latest news on USDC and Circle

Before Binance decided to delist USDC, this stablecoin had been chosen by the Luxembourg-based bank in July for “democratization of global finance and offer benefits of reconciliation, speed and cost.”

In addition to USDC, Circle in July had also launched Euro Coin (EUROC), a stablecoin pegged to the euro and thus secured with bank deposits of equal value in euros.

USDT vs USDC vs BUSD: who wins?

USDC, USDT and BUSD are currently the three main existing stablecoins in the cryptocurrency industry. Both are 100% collateralized in US dollars and can be redeemed at par at any time.

BUSD is the latest to emerge, created by Binance, and currently has a market cap of $20 billion, so less than half of USDT or USDC.

Amelia Tomasicchio

As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist. She is also a marketing teacher at Digital Coach in Milan and she is writing a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector.

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