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TrueUSD's Bitcoin Trading Volume Nears Tether’s on Binance but Traders Hesitate to Use the Token

TrueUSD's Bitcoin Trading Volume Nears Tether’s on Binance but Traders Hesitate to Use the Token

TrueUSD's Bitcoin Trading Volume Nears Tether’s on Binance but Traders Hesitate to Use the Token

Binance assigned a zero fee discount to the BTC-TUSD trading pair last month, waiving the promotion from Tether’s USDT.

Binance assigned a zero fee discount to the BTC-TUSD trading pair last month, waiving the promotion from Tether’s USDT.

Binance assigned a zero fee discount to the BTC-TUSD trading pair last month, waiving the promotion from Tether’s USDT.

AccessTimeIconApr 14, 2023, 10:26 PM
Updated Apr 17, 2023, 2:25 PM

TUSD and USDT in BTC trading on Binance (Kaiko)

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The trueUSD (TUSD) stablecoin’s market share in bitcoin (BTC) trading volume on Binance is catching up to Tether’s USDT following the exchange’s zero fee trading discount, but data shows traders are still reluctant to use TUSD, according to crypto data firm Kaiko.

Between Binance’s BTC-TUSD and BTC-USDT trading pairs, TUSD’s market share rose to 49%, almost equalling tether's.

“This is a massive increase over just a few weeks,” Clara Medalie, head of research at Kaiko, said.

However, TUSD’s growth could not offset the rapid decline in the BTC-USDT pair’s trading volume after Binance waived its zero fee discount for tether, according to Kaiko data. Moreover, larger buy and sell orders are still placed for the USDT pair, per Kaiko.“This suggests that traders are still reluctant to use TUSD despite zero fees,” Medalie added.

(Kaiko)

TUSD’s rise has come as Binance, the world’s largest crypto exchange by trading volume, picked the token as heir of its preferred Binance USD (BUSD) stablecoin issued by Paxos Trust.

The exchange restored trading with TUSD after a six-month pause after Paxos’ decision to stop issuing BUSD and assigned its zero-fee trading discount to the BTC-TUSD pair and waived the promotion from BUSD and USDT starting on March 22.

The $132 billion stablecoin market is undergoing a major upheaval stemming from a regulatory crackdown and a banking crisis in the U.S. In February, the New York Department of Financial Services (NYFDS), the state’s top financial regulator, forced Paxos to cease minting BUSD, the third-largest stablecoin, with a $16 billion market cap. Last month, the collapse of crypto-friendly Silicon Valley Bank, reserve partner of the second-largest stablecoin, USDC, sent shockwaves through the market. In the aftermath, USDC suffered more than $10 billion in outflows.

Tether’s USDT and TUSD have emerged as clear winners of the crisis. TUSD has become the crypto market’s fifth-largest stablecoin, with a $2 billion market cap. USDT’s circulating supply has grown $10 billion in the past months and is closing in on its all-time high.

Stablecoins are a crucial element in the crypto ecosystem, facilitating trading on exchanges and serving as a bridge between government-issued fiat money and digital assets.

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, little-known Asian conglomerate Techteryx acquired TUSD’s intellectual property rights, TrustToken said at the time.

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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups 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, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


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