Illustration: Brendan Lynch/Axios
Binance and OKX yesterday suspended deposits in Circle's (USDC) and Tether's (USDT) stablecoins based on the Solana blockchain, in a puzzling display of crypto exchange operations.
Why it matters: The top two dollar-pegged stablecoins by market capitalization are listed on dozens of exchanges, but the sudden, unexplained actions taken by a few of those exchanges raise the question of how stable the Solana ecosystem is.
Details: Beyond the notices of the suspension, the exchanges said little more to explain the reason for the abrupt move.
Between the lines: The suspension of support for the two top Solana-based stablecoins was largely noticed with the announcement from Binance, but the first to take action was Crypto.com, when the exchange halted them last week in the mayhem of FTX's unwinding.
What they're saying: If there was an FTX-related angle for the move, it wasn't obvious: "Is there some angle to Alameda I don't understand causing the delistings?" Twitter user @cmsholdings asked.
What others are saying: Kraken supports Solana-based USDC, the exchange's Bill King tweeted yesterday.
Context: FTX contagion spread to the Solana ecosystem quickly, owing to the leadership role of FTX founder and former CEO Sam Bankman-Fried (SBF) in that community.
The intrigue: If Circle presented any risk, exchanges might have reason to check things out.
What we're watching: Circle is set to file third quarter earnings in a few days.
