Binance Mints $50M TUSD as Stablecoin Crackdown Becomes Real

Binance exchange has minted $50 million worth of TrueUSD (TUSD) from the smart contract of the TrustToken platform. The data was revealed by Etherscan days after Paxos Trust was ordered by the US Securities and Exchange Commission (SEC) to stop issuing BUSD tokens.

Based on the details, analytics platform Lookonchain highlighted on Twitter that Alameda Research LLC and Justin Sun, the creator of the TRON blockchain are the two largest miners of the TUSD in history. Alameda reportedly minted $1.64 billion worth of TUSD, while Sun minted a total of $889 million TUSD.

Meanwhile, Binance’s CEO, Changpeng Zhao had earlier stated that the recent regulatory pressures being implemented by the regulators may result in a decline in the popularity of stablecoins backed by the US dollar. 

“There are numerous agencies applying pressure there. It will only cause the market for stablecoins pegged to the US dollar to contract,” says the CEO.

Binance Exploring Other Stablecoins

Binance has started exploring other stablecoins for its platform following the recent regulatory crackdown by the SEC and the New York Department of Financial Services (NYDFS).

Binance, which already provides services to a number of stablecoins like USDT, BUSD, and USDC said it would throw more weight in its support of Tether (USDT) in the short term in the expectation that the BUSD becomes stable.

He continued by saying that his firm is also currently trying to investigate Japanese yen- and euro-based stablecoins.

Interestingly, Zhao announced in September that his firm plans to auto-convert existing deposits of USD Coin (USDC), USDP Stablecoin (USDP), and TrueUSD (TUSD) on its platform to BUSD. At the time, analysts from JPMorgan were of the opinion that Binance’s decision will benefit Tether.

By adding more stablecoins to its platform, Binance could potentially offer its users more options for trading and hedging against market volatility. But, it’s important to note that stablecoins themselves come with some risks and disadvantages that could arise. This includes regulatory uncertainty and questions about the value of their reserve or collateralization.