Only days after stories of United States regulatory scrutiny of Paxos and Binance USD (BUSD), cryptocurrency trade Binance has minted almost $50 million value of TrueUSD (TUSD).
The transaction came about on Feb. 16, in line with knowledge from Etherscan, and in addition comes two days after Binance CEO Chanpeng “CZ” Zhao stated in a Feb. 14 Twitter Spaces that Binance would look to “diversify” its stablecoin holdings away from BUSD.
Tune-in to our Twitter Space AMA with @cz_binance beneath https://t.co/bXIztCKdry
— Binance (@binance) February 14, 2023
Despite minting almost $50 million in TUSD from the TrustToken platform’s sensible contract, CZ had earlier stated that the current regulatory motion by the United States Securities Exchange Commission and the New York Department of Financial Services over the long run might result in a fall within the dominance of U.S. dollar-backed stablecoins.
“I think with the current stances taken by the regulators on the U.S. dollar-based stablecoin, the industry will probably move away to a non-U.S. dollar-based stablecoin, back to algorithmic stablecoins.”
“There’s multiple agencies putting applied pressure there. It is just going to shrink the U.S. dollar-based stablecoin market,” he added.
CZ stated that “this has prompted us to look for more options in different places” and that they’re now exploring different choices.
50M #TUSD minted at #Binance and the worth of $TRU elevated by 200%.
On-chain knowledge reveals that #Alameda and #justinsun are the 2 largest minters of $TUSD.#Alameda minted a complete of 1.64B $TUSD in historical past.#justinsun minted a complete of 889M $TUSD in historical past. pic.twitter.com/N1tUjFQm5U
— Lookonchain (@lookonchain) February 16, 2023
While the CEO said that Binance would offer extra help for USD Coin (USDC) and Tether (USDT) over the quick time period — within the expectation that BUSD “winds down over time” — he added that they’re now seeking to discover extra into euro- and Japanese yen-based stablecoins.
As for BUSD, CZ stated that “the existing circulating supply of BUSD is there and safe, and as more people want to redeem, they will be burned.”
Interestingly, the Binance CEO added that he was by no means too bullish on the success of the Binance-branded BUSD stablecoin anyway:
“To be honest BUSD was never a big business for us, when we started I actually thought the BUSD project may fail, so we actually don’t have very good economics on that collaboration.”
Interestingly, in September, TUSD was one of many stablecoins that Binance auto-converted to BUSD to boost liquidity and capital effectivity for its customers. Other stablecoins that obtained auto-converted had been USDC and USDP Stablecoin (USDP). This drove up BUSD’s share within the stablecoin market from 10% to fifteen% in a matter of weeks.
Related: TrueUSD and Balancer Offer Liquidity Providers TUSD and BAL Rewards from Stablecoin Pool Incentive Program
TrustToken launched TUSD on March 5, 2018. It exists on the Ethereum, Avalanche, Polygon and Tron networks.
New TUSD is minted every time a purchaser wires USD to a third-party escrow account that holds USD deposits on Prime Trust’s behalf. Once acquired, TUSD can be transferred in a 1:1 ratio to the USD despatched to the dealer’s nominated ERC-20 or BEP-2 pockets tackle.