Another Stablecoin Journey? Binance Mints 49.9M TUSD

Binance, the leading cryptocurrency exchange, has just minted 49.9 million TrueUSD (TUSD) stablecoins worth approximately $50 million. The latest developments come amid a fallout with its earlier stablecoin Binance (BUSD), which was under regulatory scrutiny earlier this week. 

Binance Reduces Support for BUSD

Earlier this week, the United States Securities and Exchange Commission (SEC) probed the blockchain infrastructure firm Paxos. The blockchain company was responsible for creating and issuing the Binance USD (BUSD) with the support of Binance.

The financial agency argued that BUSD was an unregistered security. Around the same time, the New York Department of Financial Services (NYDFS), another U.S. financial regulator, ordered Paxos to stop minting the stablecoin.

Despite the massive selloff faced by the crypto market following the BUSD news, the asset has maintained its 1:1 peg to the United States dollar. This is likely because Paxos has noted that it will support the asset’s redemption.

Binance’s stance on the matter became evident when its CEO, Changpeng Zhao (CZ), noted in a Tuesday Twitter space that his company is not behind the BUSD stablecoin. He added that Binance only permitted Paxos to use its brand to develop the stablecoin.

However, since its inception, BUSD has become a major asset for trades on Binance. For this reason, CZ mentioned that his company would continue to support trading pairs involving BUSD.

Meanwhile, Zhao stated that his company would explore other stablecoins to support its ecosystem. He cited examples such as USDT and USDC.

Binance Mints 49M TUSD

In the latest move, Binance has leaned towards a stablecoin called TrueUSD (TUSD).

TrueUSD is a stablecoin designed to keep a 1:1 peg to the United States dollar. The asset was developed by TrustToken, a financial company that offers asset-backed cryptocurrencies to the market.

Amid Binance’s buy into the stablecoin, TrueFi’s TRU token saw a significant price uptrend. TrueFi is the decentralized lending arm of TrustToken. TRU jumped from $0.04 to $0.1, signifying a 206% increase. At press time, TRU trades at $0.11.

Binance’s investment in TUSD suggests that the exchange is building a new relationship with a new stablecoin issuer after Paxos’ crackdown. Time will review whether any such partnership materializes.