Binance mints 50M TrueUSD days after Paxos ordered stop issuing BUSD
Just a few days after reports of US regulatory scrutiny of Paxos and Binance USD (BUSD), crypto exchange Binance issued TrueUSD (TUSD) worth nearly $50 million.
The transaction took place on February 16. according to to data from Etherscan, and two days after Binance CEO Changpeng “CZ” Zhao stated on Twitter Spaces on Feb. 14 that Binance will be looking to “diversify” its holdings of stablecoins away from BUSD.
We are alive!
Tune in to our Twitter Space AMA with @cz_binance below https://t.co/bXIztCKdry
— Binance (@binance) February 14, 2023
Despite the release of nearly $50 million in TUSD from the TrustToken platform smart contract on Feb. 16, CZ previously announced a recent regulatory ruling from the U.S. Securities and Exchange Commission (SEC) and the New York City Department of Financial Services (NYDFS) During a long time. term could lead to a fall in the dominance of USD-backed stablecoins.
“I think with the current stance of regulators on USD based stablecoins, the industry is likely to move towards non USD based stablecoins and back to algorithmic stablecoins.”
“There are several agencies applying applied pressure. It will simply shrink the market for USD-based stablecoins,” he added.
CZ said that “this prompted us to look for additional options in different places” and that they are now looking into other options.
50M #TUSD minted in #Binance and price $TRU increased by 200%.
The chain data show that #Alameda And #justinsoon are the two largest minters $TUSD.#Alameda total minted 1.64 billion. $TUSD in history.#justinsoon total minted 889 million. $TUSD in history. pic.twitter.com/N1tUjFQm5U
— lookonchain (@lookonchain) February 16, 2023
While the CEO stated that Binance will be providing more support for USD Coin (USDC) and Tether (USDT) in the short term – in anticipation that BUSD “folds over time” – he added that they want to explore the euro more now. . and stablecoins based on the Japanese yen.
Regarding BUSD, CZ said that “the existing circulating supply of BUSD exists and is safe, and the more people want to redeem it, the more it will be burned.”
Interestingly, the Binance CEO added that he was never overly optimistic about the success of the Binance-branded BUSD stablecoin anyway:
“Honestly, BUSD was never big business for us when we started, I really thought that the BUSD project might fail, so we don’t actually have very good economics for this collaboration.”
Interestingly, in September, TUSD was one of the stablecoins that Binance automatically converted to BUSD to improve liquidity and capital efficiency for its users. Other stablecoins that were automatically converted were USDC and USDP Stablecoin (USDP). This increased the share of BUSD in the stablecoin market from 10% to 15% in a matter of weeks.
TrueUSD and Balancer offer TUSD and BAL rewards to liquidity providers from the Stablecoin Pool Incentive Program
TrustToken launched TUSD on March 5, 2018, which works on the Ethereum, Avalanche, MATIC, and Tron networks.
New TUSD is minted whenever a buyer transfers US dollars to a third party escrow that holds US dollar deposits on behalf of Prime Trust. Upon receipt, TUSD will be transferred at a ratio of 1:1 to the US dollar sent to the ERC-20 or BEP-2 wallet address specified by the trader.
Credit : cointelegraph.com