Cryptocurrency

Binance, OKX and Bybit suspend USDT and USDC deposits on Solana

Major cryptocurrency exchanges continue to carry out measures in the aftermath of FTX collapse, now halting deposits in Solana-based Tether (USDT) and USD Coin (USDC).

Binance announced on Nov. 17 that deposits of Solana-based USDT and USDC have been “temporarily suspended until further notice” on the platform.

The exchange referred to the tokens as “USDT (SOL)” and “USDC (SOL),” as the USDT and USDC stablecoins remain available for deposit via other blockchains.

Binance did not provide more information on the measure, adding that it “reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.”

Other exchanges such as OKX and ByBit have also delisted Solana-based stablecoins for deposits. OKX suspended their deposits at 3:00 am UTC on Nov. 17, while ByBit reportedly disabled such deposits as of Nov. 17 as well.

According to the on-chain data, the supply of Solana-USDC is 62% bigger than the supply of Solana-USDT. The total amount of USDC circulating on Solana amounts to 5 billion USDC ($5 billion), or 11% of the token’s total market capitalization at the time of writing.

The total amount of Solana-based USDT stands at 1.9 billion tokens ($1.9 billion), or just about 1.3% of USDT’s total market cap.

Related: Binance to liquidate its entire FTX Token holdings after ‘recent revelations’

Solana is a decentralized blockchain with an associated cryptocurrency, SOL (SOL), that has been associated with having close ties with Sam Bankman-Fried’s troubled crypto exchange, FTX. (Bankman-Fried was an early investor in Solana via Alameda Research.) Amid the ongoing FTX crisis, SOL has been tanking alongside FTX Token (FTT) and other associated coins.

The suspensions of Solana-based USDT and USDC have triggered even more red for SOL, with the cryptocurrency plummeting 7% on the latest news. At the time of writing, SOL is trading at $13.1, down about 60% over the past 30 days, according to CoinGecko.

This news comes soon after Binance announced plans to remove USDC as a tradable asset from its platform. The exchange allows USDC deposits but automatically converts them to its in-house stablecoin, Binance USD (BUSD).

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