- Binance has further ingrained TUSD into its ecosystem with new trading pairs.
- TUSD has seen an increase in trading volume in the past two weeks.
- BUSD continues its demise following a regulatory crackdown by the SEC.
Following regulatory action on Paxos, which led to the company halting its minting of Binance USD (BUSD), there has been a steady decline in the stablecoin’s utility. Binance, the creator of BUSD, has also distanced itself from the project while pivoting to a new stablecoin option.
On Tuesday, March 28, Binance announced the addition of six new trading pairs with the stablecoin project, True USD (TUSD). The trading pairs are LDO/TUSD, MATIC/TUSD, OP/TUSD, SOL/TUSD, SSV/TUSD, and XRP/TUSD.
Sponsored
TUSD has been touted as the exchange’s new ecosystem stablecoin after Binance minted $150 million worth of TUSD on February 27 following the regulatory move against BUSD. Binance then offered zero-fee Bitcoin trading with TUSD on March 15, further boosting its potential in the ecosystem.
A New Flame
Binance’s pivot to TUSD, and its decisions to bring the stablecoin deep into its ecosystem, have paid off. On March 12, The market cap of TUSD went from $1.3 billion to over $2 billion.
30-day market cap chart for TUSD. Source: CoinGecko
However, what is more notable is the increase in trading volume. While the market cap has stayed steady above $2 billion since March 12, the volume has jumped from ~$60 million to ~$533 million in the past two weeks.
Interestingly, the trading volume of BUSD has suffered less than its market cap, which has been in decline since the Paxos news.
Binance Leaving BUSD Behind
With no further BUSD coins being minted, Binance went on a crypto buying spree to eliminate its remaining BUSD holdings. On March 13, the exchange converted about $1 billion BUSD to other cryptos, including BTC, BNB, and ETH.
Binance’s CEO, Changpeng ‘CZ’ Zhao, has been open and transparent about his company’s move away from BUSD in light of the regulatory crackdown and outlined his plans directly after Paxos was hit with the lawsuit.
“Binance will continue to support BUSD for the foreseeable future. We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. eg, move away from using BUSD as the main pair for trading, etc,” he said in a Tweet on February 13.
Pivoting away from BUSD was certainly the right call for Binance, and it needed a stablecoin for its ecosystem – and TUSD appears to be filling that role. Despite this, the future of stablecoin regulation in the U.S. remains murky.
On the Flipside
- TUSD is separate from TrueFi’s $TRU token, as the companies split in June 2022. However, there are rumors that Tron founder Justin Sun controls TUSD as Sun and Binance’s ties continue to strengthen.
Why You Should Care
Stablecoin regulation remains a hot topic in the U.S. The fact that BUSD has been labeled as a security and other stablecoins have not adds to the confusing quagmire that crypto businesses have to navigate.
Read more about how Binance has found a new Stablecoin in TUSD:
Binance’s New Flame TUSD Secures Zero-Fee BTC Trading as BUSD Sinks.
Read more about the ‘Skulls of Satoshi’ artist’s change in view on BTC mining:
Greenpeace Anti-Crypto Artist Admits They Were Wrong on Bitcoin Mining.
