Altcoins
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The head of the world’s largest crypto exchange Binance, Changpeng Zhao, described the current situation in the stablecoin market. At the same time, he was ironic about the ban on issuing Binance USD (BUSD), despite the fact that it is “the most fiat-backed stablecoin.”
BUSD, the most fiat-backed stablecoin audited by major accounting firms and regulated by the NYDFS, has been forced to phase out its issuance.
USDC market capitalization is also shrinking due to bank closures. USDT is growing.
Zhao’s tweet also states that BUSD was issued by the Paxos Trust Company, which is regulated by the New York City Department of Financial Services (NYDFS) and audited by major accounting firms. However, these factors were not taken into account when Paxos was ordered to stop issuing the stablecoin last month.
Changpeng Zhao emphasized that amid pressure on Paxos and BUSD, the world’s largest stablecoin Tether USD (USDT) was able to increase its market capitalization by more than 9%. After the completion of the BUSD issuance on February 21, USDT’s market capitalization rose to $77 billion.
Meanwhile, the market capitalization of BUSD has shrunk by over 37% to $8.1 billion on March 21st.
More interestingly, the turmoil in the banking industry has led to difficulties for another stablecoin, USD Coin (USDC). Due to the collapse of Silicon Valley Bank last week, the crypto asset briefly lost its peg to the US dollar and traded at 90 cents.
Changpeng Zhao said that USDC’s market capitalization is also declining due to bank closures – it has fallen by more than 18% since March 10.
#speaks #banning #BUSD #issuance #USDT #capitalization #growth
