Indian exchange WazirX follows Binance in delisting USDC

Major Indian cryptocurrency exchange WazirX has opted to delist the US Dollar Coin (USDC) from its platform and convert remaining balances to the Binance-backed Binance USD (BUSD) stablecoin.

WazirX officially announced on Monday that it has discontinued USDC deposits along with stablecoins such as Pax Dollar (USDP) and TrueUSD (TUSD).

According to the announcement, the platform will instead offer the BUSD stablecoin to improve liquidity and capital efficiency for users. WazirX will implement BUSD auto-conversion for users of USDC, USDP and TUSD at a 1:1 ratio on October 5, the company said.

When the conversion is complete, users will be able to view their USDC, USDP and TUSD accounts in their BUSD-linked account balance. “WazirX may update the list of stablecoins eligible for auto-exchange,” the announcement added.

USDC, USDP and TUSD withdrawals are still available on WazirX until Friday. The platform plans to delist stablecoins from its trading pairs on September 26.

According to data from CoinGecko, WazirX was trading a negligible amount of USDC prior to the announcement. At the time of writing, the only USDC trading pair listed on WazirX is USDC trading against Tether (USDT) in daily volumes of $3,400.

In contrast, BUSD has two trading pairs on WazirX, trading with the USDT stablecoin and the Indian rupee, with daily trading volumes of $5,700 and $5,200 respectively.

WazirX did not immediately respond to Cointelegraph’s request for comment.

Related: Circle’s co-founder says the combined dollar ledgers on Binance will be good for USDC.

Launched by the regulated fintech firm Circle and Coinbase crypto exchange, USDC is the second largest stablecoin by market capitalization after Tether’s USDT. At the time of writing, USDC’s market cap is down $50 billion, or more than $17 billion from rival stablecoin USDT. According to CoinGecko, Binance USD, the third largest stablecoin by value, has a market cap of $20.6 billion.

Top-3 largest stablecoins. Source: CoinGecko

The latest delisting of USDC from WazirX comes shortly after Binance announced plans to remove USDC as a tradable asset from the platform. Similarly to WazirX, Binance said it will convert USDC, USDP and TrueUSD balances to BUSD stablecoin to expand liquidity.

In August, Binance banned any equity ownership in WazirX after the Indian cryptocurrency exchange was seized. India’s Enforcement Directorate had earlier frozen more than $8.1 million in WazirX as part of an anti-money laundering probe against the company.