Jeremy Allaire is the CEO and co-founder of Circle, the latter of which oversees the USDC digital stablecoin.

Recently Jeremy commented that he is not concerned about Binance’s recent decision to stop supporting Binance’s stablecoin (USDC) cryptocurrency trading.

In a lengthy tweet, Jeremy explained why he thinks development is not only good for Binance but ultimately a boon to USDC and its adoption.

Binance and BUSD:

Last Monday, Binance announced that all of its clients’ existing funds held in USDC, USDP and TUSD will be automatically converted into Binance’s stablecoin (BUSD) effective September 29th.

The platform’s native stablecoin is currently the third largest by market cap after the USDC and USDT.

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According to Binance, the move aims to enhance the liquidity and capital efficiency of the platform by merging multiple dollar-equivalent cryptocurrencies around a single asset.

The change will result in the cancellation of USDC trading on Binance, and will result in the conversion of all future USDC deposits on Binance to BUSD.

But users can still choose to withdraw their account balance from the platform in USDC, USDP and TUSD cryptocurrency if they choose.

Given these details, Jeremy Allaire told that the forced transfer would likely lead to more USDC flowing into Binance.

He explained:

With dollar ledgers, it will be easier and more attractive to transfer USDC to and from Binance for trading in the underlying markets.”

Unlike BUSD, USDC sees significant volume and usage outside of the Binance trading platform.

As such, Jeremy Allaire believes that the change will help USDC become one of the market’s preferred stablecoins for moving funds between centralized and decentralized trading platforms.

The CEO concluded:

I’m very confident in the long game we’ve been playing with USDC, and with Circle as a neutral player in the market infrastructure.

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What about tether?

USDT is still the largest stable digital currency in the world.

She was particularly left out of Binance’s recent decision.

The cryptocurrency will remain tradable on the platform.

According to Jeremy Allaire, there are two reasons for this.

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First, the current USDT liquidity on Binance will make the transition to BUSD very difficult.

Second, according to Alair, USDT is nowhere near qualifying as a cash equivalent asset.

Tether has often been criticized for holding unreliable reserve assets to support its stablecoins — more than its competitors.

Part of this stems from the partial use of commercial bond tethers in their reserves, while BUSD and USDC are backed only by cash and US Treasuries.

Tether defended himself against such allegations from the Wall Street Journal last month.

The company said it plans to dispose of its commercial paper holdings by the end of the year and that its business remains profitable.

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