• Binance CEO Changpeng ‚CZ‘ Zhao has noted that the market cap of Binance USD (USD) stablecoin has declined by $2.45 billion, with most of it moving to Tether (USDT).
• USDC has also seen its market cap shrink by about $739 million amid recent regulatory events.
• CZ reiterates that Binance does not issue BUSD and that there is a shift in the stablecoin landscape with traders preferring USDT.
Binance USD Market Cap Drops
The market cap of Binance USD (USD) stablecoin has declined by $2.45 billion over the past few days, with over $2.37 billion moving from BUSD to Tether (USDT). This follows regulatory action against Binance USD (BUSD) and its issuer Paxos.
USDC Market Cap Also Shrinks
In addition to this, the market capitalization of USD Coin (USDC) has shrunk by about $739 million as well due to this shift in regulation.
Binance Not Issuing BUSD
Binance CEO Changpeng ‚CZ‘ Zhao stated that despite this rotation of funds away from BUSD and into USDT, it is important to note that Binance does not issue their own version of the stablecoin.
Shift in Stablecoin Landscape
From CZ’s perspective, there is a clear shift in the stablecoin landscape with traders preferring Tether’s version due to its perceived safety following recent events involving Paxos and other related entities. This is evidenced by Tether’s release of another $1 billion worth of tokens recently as well as gains made by TrueFi (TRU) after 50 million worth of True USD was minted by Binance recently.
The negative view towards Paxos-issued tokens have led to a flow of funds away from them and into other more reliable forms such as Tether which benefits from being viewed as a safe haven for capital amidst all these changes occurring in the cryptocurrency space.