Confusion Abounds As Binance and OKX Suspend Support for USDC, USDT on Solana, Then Backpedal

Binance subsequently resumed deposits for Tether's USDT on Solana, while OKX reworded an original statement saying it delisted the tokens.

AccessTimeIconNov 17, 2022 at 3:35 p.m. UTC
Updated Nov 17, 2022 at 6:15 p.m. UTC

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Updated at 17:50 UTC: OKX updated its announcement saying it halted support instead of delisting the tokens. Changed headline to reflect recent updates.

Updated at 15:58 UTC: Binance has resumed deposits for USDT, according to a new blog post.

Binance and OKX suspended support for the Solana blockchain versions of the two largest stablecoins – Circle’s USDC and Tether’s USDT – the exchanges announced separately in blog posts on Thursday.

While Binance said it temporarily suspended deposits of USDC and USDT on Solana until further notice, OKX went further saying it was delisting the tokens effective Thursday at 3:00 UTC.

Binance has since resumed deposits for USDT on Solana, the exchange said in a new blog post. Later, OKX updated its announcement with a slightly changed wording, saying that it halted support for the two tokens instead of delisting them.

Binance and OKX did not return requests for comment at press time.

Solana is one the largest blockchains, and its close ties to the imploded crypto empire of Sam Bankman-Fried – FTX and Alameda Research were key investors – appears to be weighing heavily on the project and its ecosystem.

The exchanges didn't explain the reasons behind the move, which created confusion in the crypto industry.

Jeremy Allaire, CEO of USDC issuer Circle, tweeted that USDC on Solana – which is natively issued by Circle – is functioning fine. “[It’s] not clear what the motivations are for exchange actions, which are disappointing.”

Last week, crypto exchange Crypto.com decided to halt deposits and withdrawals of the Solana versions of USDC and USDT, citing “recent industry events."

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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

CoinDesk - Unknown

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.