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Binance and Coinbase halt USDC conversions

Published date:

February 2, 2026

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Crypto exchanges Binance and Coinbase have paused USDC conversions as the stablecoin fails to regain its USD peg.

Earlier, Circle revealed its $3.3B exposure to the now-defunct Silicon Valley Bank, causing the value of USDC to plummet to as low as $0.88.

Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion.

This is a normal risk-management procedural step to take while we monitor the situation.
— Binance (@binance) March 11, 2023

Shortly after Circle’s announcement, Binance tweeted that the exchange has suspended auto-conversions of USD Coin (USDC) to Paxos-issued Binance USD (BUSD).

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The exchange cited the current market conditions as the reason behind the suspension. Binance has also stopped the BUSD auto conversion facility for new deposits of Pax Dollar (USDP) and TrueUSD (TUSD), with the exchange adding,

“Users will no longer be able to withdraw USDC, USDP or TUSD from their BUSD balances.”

We are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to re-commence conversions.
— Coinbase (@coinbase) March 11, 2023

Similarly, Coinbase said the exchange has temporarily paused USDC to USD conversions. Unlike Binance, Coinbase will resume USDC conversions once banks reopen on Monday.

Blockchain transactions reveal that Circle has burned $1.4B worth of USDC tokens since Friday. Coinbase, which co-founded USDC with Circle in 2018, has also redeemed $850M USDC.

Written by

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

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Ayush Pande

Written by:

Ayush Pande

Writer

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

Radica Maneva

Reviewed by:

Radica Maneva

Senior Editor

Radica is a Senior Editor at Bitcompare. She has worked for more than a decade at leading publications as an Editor across various industries, including crypto and finance.

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