JPMorgan Emphasizes USDT’s Importance Ensuing Binance’s USDC Discontinuation

Ensuing Binance’s decision to discontinue USDC, JPMorgan analysts anticipate USDT to gain ground moving forward.

As per a recently released report by JPMorgan, the crypto exchange’s decision to auto-convert USDC deposits to BUSD could make USDT even more important when it comes to trading. According to the report, the gigantic daily trading volumes (10 times the nearest competitor) pose a serious opportunity.

From 29th September, the exchange has begun converting existing balances and stablecoin deposits of USDC, USDP and TUSD to its own stablecoin, BUSD. Besides, the digital asset exchange will cease trading pairs for the 3 stablecoins against BUSD and USDT, as well as key digital assets like BTC and ETH.

JPMorgan analysts are of the opinion that this decision will make USDT more structurally important in all virtual currency trading.

In a research note last week, the analysts mentioned,

“In our opinion, this decision is likely to bolster the importance of Tether in the stablecoin universe which had been under threat by USDC.”

It is to be noted that USDT exists across 11 blockchains, compared to USDC’s 8, with an annualized daily trading volume that is far greater than USDC, or even BTC and ETH. The research report further mentioned USDT’s average daily trading volume is 10 times that of USDC.

USDT holds over 67 Billion USD in market cap, followed by USDC’s 50 Billion USD and BUSD’s 44 Billion USD, at press time.