As the Binance USD (BUSD) stablecoin faces regulatory scrutiny, the world’s largest crypto exchange Binance is now focusing on the TrueUSD (TUSD) stablecoin.
Data from crypto intelligence firm Nansen shows that Binance has minted more than $130 million worth of TUSD stablecoins over the last week. As a result, TUSD has surged to become the fifth-largest stablecoin by market cap.
The data on CoinGeckco shows that the circulating supply of the TrueUSD stablecoin has surpassed $1.1 billion which is the highest level since August 2022. In its recent climb to the number 5 spot, TrueUSD has left behind other popular stablecoins such as decentralized finance protocol Frax Finance’s native stablecoin frax (FRX), Paxos Dollar (USDP), Gemini Dollar (GUSD), and others.
Previously known as Trust Toke, TUSD is a dollar-pegged stablecoin issued by crypto firm ArchBlock. As per Chainlink’s proof-of-reserve monitoring tool, TUSD’s value is fully backed by fiat assets.
TrueUSD and the Reshuffle in Stablecoin Market
The stablecoin market has been undergoing major reshuffling over the past few weeks. TrueUSD is under a new resurgence since the crypto exchange Binance is increasingly focusing on this stablecoin as BUSD becomes the prime target of US regulators. In a recent development, crypto exchange Coinbase also announced the suspension of the BUSD stablecoin.
Interestingly, six months ago, Binance ditched TUSD along with other stablecoins on its platform. Back then, the goal was to push the utility of BUSD on the platform. However, with the recent regulatory scrutiny on BUSD, Binance has no option but to once again adopt TUSD.
Over the last month, the market cap of BUSD has been on a steep decline dropping from $16 billion to now at $10 billion. But it is still the third-largest stablecoin by market cap as of date.
On the other hand, the TUSD exchange reserves have surged by nearly 40% between Feb. 13 and Feb. 22. Crypto exchange Binance is the major driver behind it.