Binance temporarily halts withdrawals of stablecoin USDC as investor concerns mount after FTX collapse

Binance, the world's largest cryptocurrency exchange, said Tuesday it is pausing withdrawals of the stablecoin USDC portion it carries retired a "token swap."

The determination comes arsenic capitalist concerns turn astir Binance's stableness pursuing the illness of rival speech FTX arsenic good arsenic a study of a imaginable transgression probe from the U.S. government.

Binance said that it has "temporarily paused" USDC withdrawals portion it does a "token swap." This involves swapping 1 cryptocurrency for different without the request for fiat currency.

Changpeng Zhao, CEO of Binance, tweeted connected Tuesday that the speech is seeing an summation successful withdrawals of USDC, a cryptocurrency known arsenic a stablecoin due to the fact that it is pegged one-to-one with the U.S. dollar.

USDC is utilized by investors to commercialized successful and retired of antithetic cryptocurrencies without the request to determination wealth backmost into U.S. dollars. If traders are withdrawing USDC from Binance, it could beryllium to determination it onto different platform.

Zhao said that immoderate exchanges into USDC from the stablecoin known arsenic PAX, arsenic good arsenic Binance's ain token BUSD, necessitate routing done a slope based successful New York which is not yet open.

A token swap could beryllium a mode for Binance to get much USDC rapidly portion the banks are closed successful bid to resume withdrawals.

Zhao said users could inactive retreat different stablecoins including BUSD and tether.