Binance Mints $130 Million Worth TUSD Stablecoins Amid BUSD Scrutiny
- TUSD has risen to the position of fifth-biggest stablecoin by market cap.
- The BUSD stablecoin has been temporarily removed from Coinbase.
Binance, the biggest cryptocurrency exchange in the world, has shifted its attention to the TrueUSD (TUSD) stablecoin while regulators examine the Binance USD (BUSD). According to research conducted by Nansen, a cryptocurrency intelligence business, Binance has minted TUSD stablecoins worth over $130 million in the last week. Because of this, TUSD has risen to the position of fifth-biggest stablecoin by market cap.
The circulating supply of TrueUSD stablecoin reaches a record high of almost $1.1 billion, according to statistics from CoinGecko, surpassing the previous peak set in August 2022.
Rise of TUSD Stablecoin
TrueUSD has just risen to the number 5 slot, surpassing other prominent stablecoins including Paxos Dollar (USDP), Gemini Dollar (GUSD), and the native stablecoin of the decentralized financial system Frax Finance, frax (FRX).
TUSD, formerly known as Trust Toke, is a stablecoin created by the blockchain company ArchBlock that is tied to the US dollar. The stablecoins value is backed 100% by fiat assets, as verified by Chainlink’s proof-of-reserve tracking tool.
During the last few weeks, there has been a profound reorganization in the stablecoin market. While BUSD becomes the primary target of US authorities, TrueUSD is seeing a renaissance as a result of Binance’s increased emphasis on this stablecoin. The BUSD stablecoin has been temporarily removed from the Coinbase cryptocurrency exchange, as was recently revealed.
It’s interesting to note that Binance stopped supporting TUSD and other stablecoins on its platform about six months ago. At that time, the objective was to increase BUSD’s platform usefulness. Recent regulatory scrutiny of BUSD, however, has left Binance with little choice but to revert to TUSD.
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