Has the Binance giant chosen its new favorite stablecoin to replace BUSD?

After the scandal with the SEC attack on BUSD, the head of Binance publicly stated that they will look for an alternative stablecoin. An independent analyst found that immediately after the BUSD ban, Binance began to mint TrueUSD.

Binance started to mint TrueUSD

Analyst company CryptoQuant cites data showing that Binance’s market share in Bitcoin trading volume rose to 92% by the end of 2022. For January 2023, the exchange added about 6% more, reaching 98%. For comparison, the nearest competitor, the U.S. exchange Coinbase ranked second in terms of trading volume on the spot market at the end of 2022 with an indicator of about 7%.

As Binance, as a monopolist, begins to play an exceptional role in the cryptocurrency circulation, analysts keep a close eye on any of its actions. 

A @lookonchain analyst recently found that Binance issued $50 million worth of TrueUSD tokens after BUSD was banned from issuing. According to Etherscan, the token was issued on Feb. 16, two days after CZ publicly stated that the exchange would seek to diversify its assets away from BUSD.

The $TRU token rose 250% overnight on the news, as many suspect TrueBSD (TBSD) may be the new stablecoin of choice for Binance. 

A Twitter user @CryptoMoneyMntr ironically makes this point:

“SEC Stopped BUSD Minting, Now Binance Started Minting TUSD.”

Only days after reports of US regulatory scrutiny of Paxos and Binance USD, #Binance has minted nearly $50 million worth of TrueUSD (TUSD).

Binance CEO “CZ” said in a Feb. 14 Twitter Spaces that Binance would look to “diversify” its #StableCoin holdings away from #BUSD . pic.twitter.com/OOXNv8qL5C

— Blockchain Army (@blockchainarmy_) February 17, 2023

What is known about TrueUSD?

$TRU (TrustToken) is the Ethereum token that powers TrueFi, a decentralized financial protocol, one of whose products is stablecoin TrueUSD. 

TrueUSD is fully collateralized with US dollars, held in escrow accounts accessible by trusted third-party fiduciary partners. TrustToken publishes its escrow holdings of US dollars twice a month. TrueUSD project calls itself: 

“The world’s most transparent stablecoin, fully collateralized and independently attested live on-chain.”

TrueUSD has U.S. jurisdiction and is also the fourth most capitalized stablecoin on the market. TrueUSD’s circulation is distributed across multiple blockchains in this way: