Binance-backed BUSD circulating supply drops to less than $3B

cyptouser10 months agoDerivatives Exchanges317

Binance-backed BUSD circulating supply drops to less than $3B

The circulating supply of Binance USD (BUSD) has fallen to $2.8 billion, marking its lowest point since early 2021, when the stablecoin was still relatively new to the crypto market, according to CryptoSlate’s data.

The Binance-backed stablecoin has seen its market share rapidly decline this year after it was labeled securities by the U.S. Securities and Exchange Commission (SEC) in its legal actions against the exchange. Besides that, BUSD issuer Paxos was forced to stop other mints of the asset by the New York Department of Financial Services. Binance and Paxos vehemently rejected this SEC classification.

While Binance has committed to maintaining support for the stablecoin until its complete phase-out, regulatory actions have prompted a swift exodus from the troubled stablecoin within the crypto community, causing its circulating supply to dwindle to under $3 billion from a peak exceeding $20 billion last year.

Binance push alternatives

With BUSD certain to end by next year, Binance has pushed several stablecoin alternatives to its users.

Last week, the firm recommended that its users convert their BUSD into First Digital USD (FDUSD), a stablecoin issued by Hong Kong-based First Digital Group and launched in late July.

Following the announcement, FDUSD’s market supply has surged to a record-breaking $382 million. Nonetheless, the stablecoin’s adoption remains constrained, as it has only been listed on Binance, lacking presence on other major crypto platforms.

Before FDUSD, Binance also heavily marketed Justin Sun-linked True USD (TUSD). TUSD is the fastest-growing stablecoin of this year, with its market capitalization growing to more than $3.4 billion primarily due to the early support it enjoyed from Binance.

However, the stablecoin has come under heavy fire from the crypto community over its alleged links with Tron’s network founder, Justin Sun, and its “exposure” to bankrupt Nevada-based crypto custodial firm Prime Trust.

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Federal Reserve will require state banks to get written ‘non-objection’ from central bank before eng

The U.S. Federal Reserve has issued new guidelines for state member banks regarding activi...

Global Stablecoins need governing body, pose risk to financial stability says IMF, FSB in new G20 re

The International Monetary Fund (IMF) and the Financial Stability Board (FSB) published a...

Tether now a top global buyer of US Treasury bills amid market turmoil

Tether has emerged as one of the top buyers globally of US Treasury bills, with a commanding exposur...

Kraken introduces support for PayPal’s stablecoin, PYUSD

Kraken announced on Aug. 18 that it had added support for PayPal’s stablecoin, also k...

Binance nudges users towards FDUSD as it ‘gradually’ phases BUSD out

Binance has advised its users to convert their Binance USD (BUSD) holdings to First Digital USD (FDU...

Hong Kong based stablecoin FDUSD goes live on Binance with monthly audits

Hong Kong-based First Digital Group announced on July 26 that its stablecoin, First Digital USD (FDU...