Cryptocurrency exchange Binance has started minting massive amounts of another stablecoin after the BUSD token was blocked from being minted by the SEC and the USDC token lost its peg to $1.
Binance Mints $657 Million TUSD
According to on-chain data, Binance TrueUSD (TUSD) It released $657 million in tokens. The Mint transaction was carried out on the TRON Blockchain.
Circle, the manager of one of the world’s largest stablecoins, said that $ 3.3 billion of its reserves were stuck in Silicon Valley Bank, causing a drop in the price of the USDC token to $ 0.82.
US cryptocurrency exchange Coinbase has announced that it has temporarily stopped conversions between USDC and the US dollar. Rival exchange Binance also said it will pause automatic conversions of USDC to BUSD, a stablecoin bearing the Binance brand.
Circle called for an immediate federal rescue plan for the SVB.
Earlier this week, Silvergate, a US bank that serves crypto clients, announced that it would cease operations after deposits dwindled.
Stablecoins play an important role in connecting traditional and crypto markets, and traders use them as cash or cryptocurrencies to trade.
USD Coin, issued by Circle, is the second largest stablecoin in the crypto market, with $42 billion in circulation, according to company data.
The company said it holds a quarter of its USDC reserves in cash with six banking partners, including SVB. Most of its $40 billion reserves are held in short-term US government bonds and other US banks.
*Not investment advice.
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