After Paxos stopped issuing BUSD, Binance mints 50M TrueUSD in just a few days

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Despite the minting of $50 million in TUSD, Zhao previously said the regulatory crackdown on stablecoins in the U.S. will cause the USD-back stablecoin market to “shrink.” News Own this piece of history Collect this article as an NFTOnly days after reports of United States regulatory scrutiny of Paxos and Binance USD (BUSD), cryptocurrency exchange Binance has minted nearly $50 million worth of TrueUSD (TUSD).The transaction took place on Feb. 16, according to data from Etherscan, and also comes two days after Binance CEO Chanpeng ‘CZ’ Zhao said in a Feb. 14 Twitter Spaces that Binance would look to “diversify” its stablecoin holdings away from BUSD.We’re live!Tune-in to our Twitter Space AMA with @cz_binance below https://t.co/bXIztCKdry– Binance (@binance) February 14, 2023
Despite minting nearly $50 million in TUSD from the TrustToken platform’s smart contract on Feb. 16, CZ had earlier said the recent regulatory action by the United States Securities Exchange Commission (SEC) and the New York Department of Financial Services (NYDFS) over the long term may lead to a fall in 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 only going to shrink U.S. dollar-based stablecoin markets,” he said. CZ had previously stated that the recent regulatory action by the United States Securities Exchange Commission (SEC) and New York Department of Financial Services (NYDFS) over the long term may have prompted them to look for other options. 50M #TUSD were minted at #Binance, and the price for $TRU rose by 200%. Pic.twitter.com/N1tUjFQm5U– Lookonchain (@lookonchain) February 16, 2023. pic.twitter.com/N1tUjFQm5U– Lookonchain (@lookonchain) February 16, 2023
While the CEO stated that Binance would provide more support for USD Coin (USDC) and Tether (USDT) over the short term — in expectation that BUSD “winds down over time” — he added that they’re now looking to explore more into Euro and Japanese Yen-based stablecoins.As for BUSD, CZ said “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 never 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.”Interesting, in September, TUSD was one of the stablecoins that Binance auto-converted to BUSD to enhance liquidity and capital-efficiency for its users. USDC and USDP Stablecoin were also auto-converted by Binance. BUSD’s share of the stablecoin market grew from 10% to 15% in just weeks. The TUSD network operates on the Ethereum and Avalanche networks. It was launched on March 5, 2018. Once received, TUSD is transferred in a 1:1 ratio with the USD sent to the trader’s nominated ERC-20 address or BEP-2 wallet address.