Driven by an increasing role on crypto exchange giant Binance, the trueUSD (TUSD) stablecoin has become the fifth-largest stablecoin by market capitalization.
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 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.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.