Binance has minted nearly $50 million worth of TrueUSD ($TUSD) after Paxos ordered stop issuing BUSD
Binance, a cryptocurrency exchange, has created roughly $50 million worth of TrueUSD just days after rumors surfaced that Paxos and Binance USD (BUSD) were under regulatory review by US authorities (TUSD).
According to statistics from Etherscan, the transaction occurred on February 16. It also occurs two days after Binance CEO Chanpeng ‘CZ’ Zhao stated in a Twitter Message on February 14 that Binance would seek to “diversify” its stablecoin holdings away from BUSD.
Despite creating nearly $50 million in TUSD through the TrustToken platform’s smart contract on February 16, CZ had previously stated that recent regulatory action by the New York Department of Financial Services (NYDFS) and the Securities and Exchange Commission of the United States (SEC) may, in the long run, result in a decline in the dominance of U.S. dollar-backed stablecoins. While the CEO predicted that BUSD will “wind down over time,” Binance would provide additional support in the short term for USD Coin (USDC) and Tether (USDT), he also said that they are currently seeking to investigate Euro and Japanese Yen-based stablecoins.
About BUSD, CZ stated that “when more individuals try to redeem it, they will be burned,” but that the current amount that is in circulation is present and safe. It’s interesting to note that in order to improve liquidity and capital efficiency for its customers, Binance automatically transformed one of the stablecoins, TUSD, to BUSD in September. Moreover, USDC and USDP Stablecoins were automatically converted stablecoins (USDP). In a few of weeks, this increased BUSD’s market share in stablecoins from 10% to 15%.
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