TrueUSD Becomes 5th-Largest Stablecoin as Binance Mints $130M TUSD in a Week
Blockchain data shows crypto exchange giant Binance has been relying increasingly on TUSD following a crackdown on its Binance USD stablecoin by U.S. regulators.
Driven by an increasing role on crypto exchange giant Binance, the trueUSD (TUSD) stablecoin has become the fifth-largest stablecoin by market capitalization.
Blockchain data by crypto intelligence firm Nansen shows that Binance, the world’s largest crypto exchange by trading volume, minted some $130 million worth of TUSD in the past seven days.
With the recent gains, TrueUSD stablecoin’s circulating supply surpassed $1.1 billion, according to data by crypto price tracker CoinGecko, which is the highest level since August.
TUSD has toppled decentralized finance protocol Frax Finance’s native stablecoin frax (FRX) for fifth place in market value by growing 15% over the last week, crypto data platform DefiLlama shows.
TUSD is a dollar-pegged stablecoin issued by crypto firm ArchBlock, previously known as TrustToken. Its value is fully backed by fiat assets, according to blockchain data provider ChainLink’s proof-of-reserve monitoring tool. In 2020, Asian conglomerate Techteryx acquired TUSD’s intellectual property rights, TrustToken said at the time, separating the stablecoin from the decentralized lending protocol TrueFi.
TUSD gains amid stablecoin market reshuffling
TrueUSD’s resurgence comes as Binance has been increasingly relying on the token after its BUSD stablecoin became a prime target in a U.S. regulatory crackdown, The crackdown sparked rumors that Binance might consider giving a bigger role to TUSD on its platform.
TUSD’s growing presence on Binance represents a significant reversal, coming six months after Binance ditched TUSD among other stablecoins from the platform’s trading pairs to consolidate trading liquidity and boost BUSD.
Paxos, the U.S.-based regulated issuer of BUSD, announced it would cease issuing BUSD on Feb. 13, citing pressure from the New York Department of Financial Services (NYDFS), a regulatory agency. CoinDesk has also reported the U.S. Securities and Exchange Commission (SEC) was preparing to sue Paxos for issuing unregistered securities.
TUSD exchange reserves experienced a 39% gain between Feb. 13 and Feb. 22, driven mostly by Binance, crypto research firm CryptoQuant told CoinDesk last week.
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