Changpeng Zhao (CZ), CEO of leading cryptocurrency exchange Binance, drew attention to the current situation in the stablecoin market. Although CZ is a strong asset backed by “fiat currency” Binance USDIronically, the problems experienced in BUSD criticized.
#BUSDthe most fiat-backed stablecoin, audited by big audit firms, regulated by the NYDFS, was forced to wind down (no new minting).
NEWS CONTINUES BELOWUSDC is shrinking in market cap too due to bank closures.
USDT is growing. pic.twitter.com/q5OYQdpAtW
NEWS CONTINUES BELOW— CZ 🔶 Binance (@cz_binance) March 21, 2023
Changpeng ZhaoHe also noted that BUSD is issued by the Paxos Trust Company, a stablecoin firm regulated by the New York Department of Financial Services (NYDFS) and overseen by major accounting firms. However, when Paxos was ordered to cease issuing stablecoins last month, all the details the CEO mentioned were ignored by regulators.
CZ Addresses BUSD and Paxos Issues
Changpeng Zhao Paxos and while the pressure on BUSD continues, he pointed out that the world’s largest stablecoin, Tether USD (USDT), has increased its market capitalization by more than 9%. Since the minting of BUSD was stopped on February 21, the market value of USDT has reached $77 billion.
Meanwhile, the market cap of BUSD took a big hit, shrinking more than 37% over the same period. At the time of this writing, the stablecoin had a market cap of $8.1 billion. The recent turmoil in the banking industry has left another struggling stablecoin behind.
The Binance founder also did not forget to draw attention to the situation of USD Coin (USDC), which was hit by the collapse of Silicon Valley Bank (SVB) last week. The stablecoin briefly lost its peg to the US Dollar and fell as low as 90 cents. Changpeng Zhao stated that the market value of USDC has also decreased due to bank closures. Stablecoin’s market cap has dropped over 18% since March 10, when the SVB collapsed.
You can follow the current price action here.