Wednesday, March 29, 2023

This is how Binance needs to mitigate its stable after the BUSD ban

Binance turns to a new order of stability in the event of United States Securities and Exchange Commission (SEC) regulatory action against the stable, Binance USD (BUSD). The SEC had sent a notice to Wells, saying BUSD violated US securities laws.

After the SEC notification, the New York Department of Financial Services (NYDFS) asked BUSD issuer Paxos Trust to stop mining new BUSD. The ban on BUSD mining forced Binance to look for alternative methods to meet the stable requirements.

According to the data chain, the largest cryptocurrency exchange is trying to incorporate the trading volume of TrueUSD (TUSD) and add support for several decentralized stables. Cryptocurrency exchange accounts for 180 million TUSD from February 16-24.

1/During the SEC regulation of $BUSD, #Binance seeks to collaborate with other stable projects.

– Minted 180M$TUSD from February 16 to 24;
– The inclusion of $LQTY in the Innovation Zone was announced on February 28;
– Announced today a permanent $TRU contract.

TrustToken, the developer behind the stable US dollar-denominated TUSD, has been a partner of Binance since June 2019. The company Binance allowed TUSD to be traded for no fee and exchanged for fiat currencies. The pair’s relationship with TUSD has come full circle. In September 2022, Binance pegged TUSD to BUSD to increase its market share. Now with the BUSD ban, Binance is mining more and more new TUSD to mitigate their stabilization needs.

Binance CEO Changpeng Zhao said the cryptocurrency exchange is looking at other options to diversify its stable from the BUSD after regulatory actions. Just a few weeks later, Binance launched support for the decentralized Liquity (LQTY) lending protocol and TrueFi (TRU) perpetual contracts. TRU Spring is an indication of the decentralized financial TrueFi loan protocol.

The listing of Binance Liquidity and TrueFi has been a huge boost to their price, as both tokens are up 200% in the last month. Cointelegraph reached out to Binance about their interest in a decentralized stablecoin, but did not hear back before publication.

Decentralized stables became popular with the arrival of the native Terra stable, TerraUSD (UST). Market experts believed that decentralized stablecoins would be the next big thing in the cryptocurrency ecosystem. However, with the collapse of Earth’s ecosystem in May 2022, opinions about the nascent stablecoin concept changed rapidly.

The Office of the Currency Hall saw the collapse and collapse of the algorithmic stable UST as an example of the stable “running the risk” and financial gains resulting from smaller maneuvers as well.

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Nation World News Desk
Nation World News Desk
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