Binance Increases USDC Holdings as BUSD’s Market Cap Slides Lower – Bitcoin News
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Binance, the world’s largest cryptocurrency exchange, recently increased its USDC holdings as the market cap of its BUSD stablecoin slid lower.
The move comes as the market cap of BUSD, Binance’s own stablecoin, has been steadily declining since its launch in October 2019. BUSD’s market cap has fallen from a peak of $1.2 billion in October to just over $800 million as of mid-December.
In the meantime, Binance has increased its holdings of USDC, a stablecoin issued by Circle and Coinbase, from $50 million in October to over $220 million as of mid-December. This is a more than four-fold increase in just two months.
The move is likely a sign that Binance is looking to shift its focus away from BUSD and towards USDC, which has a much larger market cap and is backed by two of the biggest names in the cryptocurrency industry.
It’s also a sign that Binance is looking to diversify its stablecoin holdings in order to reduce its risk. By holding both BUSD and USDC, Binance is able to hedge its bets and reduce its risk in case either of the stablecoins experiences a major price drop.
The move is also likely a sign that Binance is looking to increase its presence in the US market. USDC is the most widely-used stablecoin in the US, and by increasing its holdings of USDC, Binance is signaling that it wants to be a major player in the US market.
Overall, the move is a sign that Binance is looking to diversify its holdings and increase its presence in the US market. It’s a smart move that should pay off in the long run.
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