Following the New York Department of Financial Services (NYDFS) directive ordering Paxos to stop minting BUSD stablecoin, crypto exchange Binance has switched gears to other stablecoins in a bid to satisfy the needs of users.
On March 6, on-chain data Lookonchain revealed that Binance is collaborating with other stablecoin projects as it has minted 180 million $TUSD with a view to filling the gap created by BUSD.
Meanwhile, TrustToken, the firm behind U.S. dollar-pegged stablecoin TUSD, has been in partnership with Binance since July 2019. The ongoing partnership enables Binance to buy TUSD for zero fees as well as redeem it for fiat currency.
While Binance had earlier auto-liquidated TUSD to BUSD in order to boost its market share, it is now increasingly minting new TUSD so as to meet users’ demand for stablecoins.
Recall that Binance CEO Changpeng Zhao (CZ) stated that the crypto exchange will continue to explore viable options targeted at diversifying its stablecoin away from BUSD due to regulatory logjams.
In the meantime, Binance has also expressed support for the decentralized borrowing protocol Liquity (LQTY) and launched TrueFi (TRU) perpetual contracts. TRU served as the native token of the decentralized finance protocol TrueFii.
Binance Finds Alternative Amid Regulatory Concerns
There is increasing speculation that decentralized stablecoins will eventually take the limelight amid the ban on BUSD and the collapse of Terra’s native stablecoin Terra USD (UST).
While Binance is yet to show direct interest in decentralized stablecoins, its BUSD stablecoin has received backlash from other crypto exchanges. Already, Coinbase has informed its users that it would suspend trading for Binance USD (BUSD).
Amid Binance’s efforts to remain stable for its users, a report by the Wall Street Journal (WSJ) on March 5 revealed that the crypto exchange is taking various steps to evade U.S. regulatory scrutiny.
Meanwhile, the allegation remains an hypothesis as no regulatory agencies have directly alleged Binance. Given a couple of crackdowns on several crypto firms in recent times, the days ahead will be challenging for crypto firms.
