Minting of TrueUSD by Binance
• 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.
• 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.
• 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.
Crypto Exchange Binance recently announced that it has minted 50 million TrueUSD (TUSD). This move comes as US regulators are looking into Paxos and Binance USD. The transaction occurred on February 16th, two days after CZ announced that they would diversify their holdings away from BUSD due to potential regulatory action against USD backed stablecoins by US SEC and NYDFS.
In light of this news, CZ had expressed his opinion that he never had high hopes for the development of the stablecoin, which bears the name ‘BUSD’. In an attempt to improve access to liquidity and capital efficiency for customers, Binance automatically converted TUSD to BUSD back in September along with USDC and USDP coins as well. Furthermore, plans have been made to expand operations into euro and yen-based stablecoins too.
The minting process began when buyers put US dollars (USD) into an escrow account managed by Prime Trust. Each time this happened new TUSD were created accordingly.
It is clear that with regulators scrutinizing Paxos and other similar organizations, crypto exchanges need to be prepared for any eventualities; this includes diversifying their holdings away form USD backed coins such as TUSD or else risk being shut down due to legal implications as seen with some other exchanges before them. As such, it appears that with these recent developments more people will be turning towards alternative solutions like TUDS instead of traditional ones like USDT or PAXOS in order to ensure their safety going forward.