Binance minted True USD for 50 million after SEC’s statement on verification
2023.02.17 03:06
Binance minted True USD for 50 million after SEC’s statement on verification
By Tiffany Smith
Budrigannews.com – The cryptocurrency exchange Binance has created nearly $50 million worth of TrueUSD (TUSD) just a few days after reports that Paxos and Binance USD (BUSD) are under regulatory scrutiny in the United States.
According to data from Etherscan, the transaction took place on February 16, two days after Binance CEO Chanpeng “CZ” Zhao said on Twitter on February 14 that Binance would try to “diversify” its stablecoin holdings away from BUSD.
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Notwithstanding stamping almost $50 million in TUSD from the TrustToken stage’s brilliant agreement, CZ had prior said that the new administrative activity by the US Protections Trade Commission and the New York Branch of Monetary Administrations over the long haul might prompt a fall in the strength of U.S. dollar-upheld stablecoins.
“I think the industry will probably move away from a U.S. dollar-based stablecoin and back to algorithmic stablecoins, I think with the current stances taken by the regulators on the U.S. dollar-based stablecoin.”
There are numerous organizations exerting pressure. The U.S. dollar-based stablecoin market will simply shrink as a result,” he added.
CZ stated that they are currently investigating additional options and that “this has prompted us to look for more options in different places.”
At Binance, 50 million TUSD were created, and the price of one TRU increased by 200 percent.
According to on-chain data, the two largest $TUSD miners are #Alameda and #Justinsun. In total, #Alameda produced 1.64 billion $TUSD, while #Justinsun produced 889 million $TUSD. pic.twitter.com/N1tUjFQm5U
While the CEO said that Binance would support USD Coin (USDC) and Tether (USDT) more in the short term in the hope that BUSD would “wind down over time,” he also said that they are now looking to look more into stablecoins based on the euro and Japanese yen.
CZ stated that “the existing circulating supply of BUSD is there and safe, and as more people want to redeem, they will be burned.” This was in reference to BUSD.
Intriguingly, the CEO of Binance went on to say that he was never particularly optimistic about the success of the BUSD stablecoin, which was branded after Binance:
“To be honest, BUSD was never a big business for us; when we first started, I actually thought the BUSD project might fail, so the economics of that collaboration are actually not very good.”
It is interesting to note that one of the stablecoins that Binance auto-converted to BUSD in September was TUSD, which aimed to improve liquidity and capital efficiency for its customers. USDC and USDP Stablecoin (USDP) were two additional stablecoins that were automatically converted. In a matter of weeks, this increased BUSD’s share of the stablecoin market from 10% to 15%.
TUSD was introduced by TrustToken on March 5, 2018. It is present on the Tron, Ethereum, Avalanche, and Polygon networks.
When a buyer wires USD to a third-party escrow account that holds USD deposits on Prime Trust’s behalf, new TUSD is created. TUSD will be sent to the trader’s designated ERC-20 or BEP-2 wallet address in a ratio of one to one with USD.
