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- Changpeng Zhao recently pointed out the irony in the winding down of Binance USD (BUSD).
- The Binance chief highlighted the crackdown on BUSD despite being regulated by the NYDFS.
- Zhao also highlighted the growing market cap of USDT amid USDC’s shrinking market cap.
Changpeng Zhao, the man behind the world’s largest crypto exchange Binance, took to Twitter earlier today to point out the current environment in the stablecoin market. The Binance CEO began by pointing out the irony in the winding down of Binance USD (BUSD), despite it being the “most fiat-backed stablecoin.”
#BUSD, the most fiat-backed stablecoin, audited by big audit firms, regulated by the NYDFS, was forced to wind down (no new minting).USDC is shrinking in market cap too due to bank closures.USDT is growing. pic.twitter.com/q5OYQdpAtW— CZ Binance (@cz_binance) March 21, 2023
Zhao’s tweet further stated that BUSD was issued by Paxos Trust Company, a stablecoin firm that was regulated by the New York Department of Financial Services (NYDFS) and audited by big accounting firms. However, these factors didn’t come in handy when Paxos was ordered to stop issuing the stablecoin last month.
Changpeng Zhao highlighted that amid the crackdown on Paxos and BUSD, the world’s largest stablecoin Tether USD (USDT) had been able to boost its market capitalization by more than 9%. Since the minting of BUSD was suspended on February 21, USDT’s market cap has grown to a whopping $77 billion.
Meanwhile, BUSD’s market capitalization has taken a massive hit, shrinking by more than 37% over the same period. At the time of writing, the stablecoin had a market cap of $8.1 billion. The recent turmoil in the banking industry has left another stablecoin struggling in its wake.
The Binance founder drew attention to the predicament of USD Coin (USDC), which took a hit thanks to the fall of Silicon Valley Bank (SVB) last week. The stablecoin briefly lost its peg to the US Dollar and traded as low as 90 cents. Changpeng Zhao stated that USDC’s market cap was also decreasing due to bank closures. The stablecoin’s market cap has fallen by over 18% since March 10, which is when SVB collapsed.
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