Binance will increase its support for USDC and USDT in the near future.
CZ said that he never had high hopes for the development of the stablecoin BUSD.
Binance, a cryptocurrency exchange, has minted roughly $50 million worth of TrueUSD in only a few days after news surfaced that US regulators were looking into Paxos and Binance USD.
According to Etherscan, the transaction occurred on February 16 and came only two days after Binance CEO Changpeng Zhao “CZ” said in a Twitter Spaces on February 14 that the exchange will seek to “diversify” its stablecoin holdings away from BUSD.
Diversifying Stablecoin Support
CZ had previously stated that the recent regulatory action by the United States Securities and Exchange Commission (SEC) and the New York Department of Financial Services might lead to a long-term decline in the supremacy of U.S. dollar-backed stablecoins, amidst minting well almost $50 million in TUSD from the TrustToken platform’s smart contract.
In light of the CEO’s projection that BUSD would “wind down over time,” Binance will increase its support for USDC and USDT in the near future. The exchange is also keen to expand its operations into euro and yen-based stablecoins.
CZ said that the existing circulating supplies of BUSD are available and secure, and when more individuals try to redeem them, they will be burned. Binance’s CEO also said that he never had high hopes for the development of the stablecoin BUSD that bears the Binance name.
Binance, in an effort to improve its customers’ access to liquidity and capital efficiency, automatically converted TUSD to BUSD in September. The USDC and USDP stablecoins were also automatically converted. Each time a buyer puts US dollars (USD) into an escrow account managed by Prime Trust, new TUSD are created.