Here’s how Binance is mitigating its stablecoin needs after BUSD ban

cointelegraph.com:

Binance has turned to a new set of stablecoins in the wake of the United States Securities and Exchange Commission’s (SEC) regulatory action against its native stablecoin, Binance USD (BUSD). The SEC had sent a Wells notice, alleging BUSD violates U.S. securities law.

Following the SEC’s notice, the New York Department of Financial Services (NYDFS) asked BUSD issuer Paxos Trust to stop minting new BUSD altogether. The minting ban on BUSD has forced Binance to seek alternative methods to meet its stablecoin needs.

According to on-chain data, the largest cryptocurrency exchange by trading volume is looking to onboard TrueUSD (TUSD) and ad support for a few decentralized stablecoins. The crypto exchange minted 180 million TUSD from Feb. 16–24.

1/ With the SEC’s regulation of $BUSD, #Binance is looking to collaborate with other stablecoin projects.- Minted 180M $TUSD from Feb 16 to Feb 24;- Announced listing $LQTY in the Innovation Zone on Feb 28;- Announced launching $TRU perpetual contract today.A thread pic.twitter.com/YqCDWkd3hE

TrustToken, the operator behind U.S. dollar-pegged stablecoin TUSD, has been a Binance partner since June 2019. The partnership allowed Binance to buy TUSD for zero fees and redeem it for fiat currency. Binance’s TUSD relationship has come full circle. In September 2022, Binance auto-liquidated TUSD to BUSD to increase its market share. Now, with a ban on BUSD, Binance is increasingly minting new TUSD to mitigate its stablecoin needs.

Binance CEO Changpeng Zhao has said that the crypto exchange will look at other options to diversify its stablecoin away from BUSD after the regulatory actions. Just a couple of weeks later, Binance announced support for the decentralized borrowing protocol Liquity