Zhao has earlier predicted that the demand for stablecoins with USD backing will "shrink" despite the minting of $50 million in TUSD.
Binance, a cryptocurrency exchange, has created roughly $50 million worth of TrueUSD just days after rumors surfaced that Paxos and Binance USD were under regulatory examination by US authorities.
Data from Etherscan indicates that the transaction occurred on February 16. It also occurs two days after Binance CEO Chanpeng "CZ" Zhao stated in a Twitter Message on February 14 that Binance will seek to "diversify" its stablecoin holdings away from BUSD.
We're live!
— Binance (@binance) February 14, 2023
Tune-in to our Twitter Space AMA with @cz_binance below 👇https://t.co/bXIztCKdry
CZ had previously stated that the recent regulatory action by the United States Securities Exchange Commission and the New York Department of Financial Services over the long term may lead to a fall in the dominance of U.S. dollar-backed stablecoins despite making nearly $50 million in TUSD from the TrustToken platform's smart contract.
“I think with the current stances taken by the regulators on the U.S. dollar-based stablecoin, the industry will probably move away to a non-U.S. dollar-based stablecoin, back to algorithmic stablecoins.”
He added:
“There’s multiple agencies putting applied pressure there. It is just going to shrink the U.S. dollar-based stablecoin market, this has prompted us to look for more options in different places.”
50M #TUSD minted at #Binance and the price of $TRU increased by 200%.
— Lookonchain (@lookonchain) February 16, 2023
On-chain data shows that #Alameda and #justinsun are the two largest minters of $TUSD.#Alameda minted a total of 1.64B $TUSD in history.#justinsun minted a total of 889M $TUSD in history. pic.twitter.com/N1tUjFQm5U
While the CEO promised that Binance will give USD Coin more support
He stated that they are now seeking to investigate further into stablecoins based on the euro and Japanese yen in the short term with the anticipation that BUSD "winds down over time."
CZ stated that "the present circulating quantity of BUSD is there and safe, and when more individuals seek to redeem, they will be burnt" in regards to BUSD.
Incidentally, the CEO also said that he was never overly optimistic about the BUSD stablecoins success:
“To be honest BUSD was never a big business for us, when we started I actually thought the BUSD project may fail, so we actually don’t have very good economics on that collaboration.”
Binance used TUSD and converted to BUSD in September to improve liquidity and capital efficiency for its customers. Moreover, USDC and USDP Stablecoins were automatically converted stablecoins. In a few weeks, this increased BUSD's market share in stablecoins from 10% to 15%.
TUSD was introduced by TrustToken on March 5, 2018. It is present on the Tron, Polygon, Avalanche, and Ethereum networks.
Every time a buyer transfers USD to a third-party escrow account holding USD deposits on behalf of Prime Trust, new TUSD are created. The trader's designated ERC-20 or BEP-2 wallet address will receive TUSD, which will then be transferred there in a 1:1 ratio to any USD that was paid there.
