According to some reports, one of the largest crypto exchanges in the world, Binance, minted $50M TrueUSD days after Paxos ordered to stop issuing BUSD. Despite the minting of $50M worth of TUSD, Zhao previously said the regulatory crackdown on stablecoins in the United States would cause the US-backed stablecoin market to shrink.
Binance minted TUSD days after Paxos ordered to stop issuing BUSD.
Only days after reports of the United States’ regulatory scrutiny of Paxos and Binance USD, crypto exchange Binance has minted nearly 50 million USD worth of TUSD. According to data from Etherscan, the transaction occurred on Feb 16, 2023. It came two days after Binance CEO Chanpeng “CZ” Zhao said in a Feb 14 Twitter Spaces that Binance would look to diversify their stablecoin holding away from Binance USD, also known as BUSD.
Despite mining nearly 50 million USD worth of TrueUSD from the TrustToken platform’s smart contract, CZ had earlier said that the recent regulations by the US SEC and New York Department of Financial Services over the long term might become a reason behind the downfall in the dominance of US dollar-backed stablecoins.
He said that with the current stances, the regulators took on the USD-based stablecoin, the industry would move away from a non-US dollar-based stablecoin to algorithm stablecoins. He added that multiple companies are putting a lot of pressure there. It may lead to the shrinking of the US dollar-based stablecoin market. CZ also stated that this had prompted us to look for more options elsewhere.
While the CEO stated that Binance would also provide more support for USD coins and Tether for a short period, in the expectation that BUSD winds down over time, he added that they are now looking to explore more into euro and Japanese yen-based stablecoins.
Binance’s CEO was never too bullish on BUSD’s success
As you know, Binance minted $50M TrueUSD days after Paxos ordered to stop issuing BUSD. As for BUSD, CZ said that the existing coin supply is safe and that as more people want to redeem, they will be burned.
Interestingly, the CEO added that he was never too bullish on the success of the Binance-branded BUSD stablecoin. He added that BUSD was never a big business for them, and when they started, he thought the BUSD project would be a failure, so they didn’t have outstanding economics on the collaboration.
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