The third-place ranking Binance currently holds as the world’s largest stablecoin may soon change. In a statement issued on February 13, Paxos Trust, the stablecoin’s operator, announced it would stop minting the Binance-branded stablecoin BUSD. The move follows reports that the SEC intends to sue Paxos for violating investor protection laws. Stablecoins are cryptocurrencies pegged to fiat currencies, such as the dollar or the euro. With a cumulative capitalization of over $136 billion, it is one of the largest crypto markets. On Monday, Coinbase informed customers that it would also suspend Binance USD trading within the next month. Due to the crackdowns and delistings, investors have fled BUSD, leading to the asset market falling from approximately $16 billion on February 13 to roughly $9 billion today. The drop marks a 43% loss.
Just as investors opt out of the BUSD, they appear to be turning to an alternative currency. Over the past month, the market capitalization of TUSD has increased by 23%, from $947 billion to $1.1 billion. It now ranks fifth in the stablecoin market. Created in 2018 by TrustToken, TUSD has prioritized real-time audits, legal protections, and transparency for token holders. The stablecoin provider has also partnered with Chainlink to implement the oracle provider’s proof-of-reserves technology. Minting is controlled with real-time on-chain verification of off-chain reserves.