Binance minted around $50 million worth of TUSD after Changpeng Zhao stated that the crypto exchange plans to “diversify” its stablecoin holdings.
Binance, the largest cryptocurrency exchange in terms of daily trading volumes, has minted almost 50 million TrueUSD (TUSD) days after Paxos was ordered to cease the issuance of Binance USD (BUSD).
According to the Etherscan data, the cryptocurrency exchange minted TUSD on February 16th.
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It is worth noting that the move comes a few days after Binance co-founder and CEO Changpeng “CZ” Zhao took to Twitter Spaces to state that the crypto exchange will seek to “diversify” its stablecoin holdings.
Binance CEO believes that current regulatory actions imposed by various financial regulators will force many crypto-related firms to move away from US Dollar pegged 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.
Moreover, Changpeng Zhao revealed that Binance started exploring other options, such as euro or Japanese yen-backed stablecoins. However, Zhao noted that the crypto exchange was still planning to give more support to USD Coin (USDC) and Tether (USDT).
It is worth noting that the past week was rather eventful for stablecoin issuer Paxos and Binance-related stablecoin BUSD. On February 10th, several news media sources reported that the New York Department of Financial Services (NYDFS) launched an investigation into Paxos.
On February 13th, the news was confirmed by Paxos, revealing that the New York financial regulator ordered Paxos to cut its ties with crypto exchange Binance and stop issuing new BUSD tokens. The company promised to do so on February 21st. However, the NY Department of Financial Services wasn’t the only institution looking into Paxos.
On February 12th, the news broke that the US Securities and Exchange Commission sent Paxos a Wells Notice claiming that the firm violated investor protection laws with Binance USD (BUSD) token, as it allegedly is unregistered security. In response to allegations, Paxos noted that it “categorically disagrees” that BUSD is security and is set “to vigorously litigate if necessary.”
