1 year ago
Coinbase CEO Brian Armstrong’s comments to a question astir the USD Coin (USDC) stablecoin during the company’s second-quarter earning calls raised immoderate eyebrows.
While commenting connected the marketplace headdress of USDC, Armstrong quipped that Binance moved immoderate of its funds from USDC into different stablecoin, but contempt that, the marketplace headdress of USDC has held up.
“Binance really moved immoderate of their funds from USDC into different stablecoin. I deliberation the information we person successful the past six oregon 7 weeks, I believe, that the USDC marketplace headdress is up nett of that. And truthful that’s an important information point.”USDC is the preferred prime of stablecoin connected Coinbase, and the crypto speech is simply a subordinate of the consortium that owns USDC. Binance crypto speech erstwhile besides held a important magnitude of USDC reserves; however, based connected Armstrong’s comments, it seems the crypto speech has converted a chunk of its holdings to different stablecoins.
Cointelegraph reached retired to Coinbase and Binance to corroborate the quality but did not person a effect by publication.
According to on-chain data, Binance has been redeeming USDC for United States dollars recently, with galore marketplace observers believing it is going toward its caller stablecoin of prime called First Digital USD (FDUSD).
CZ + Sun person been exiting $USDT via $USDC to get USD. Tether can't redeem billions.
New stablecoins emerge. $TUSD denominated volumes went from 0% to 20% successful conscionable a fewer months. #Binance controls 90% of $TUSD supply. This is precise simple.
The cartel is turning. Please advise. https://t.co/T8PLDNfu2n
However, this isn’t Binance’s archetypal conversion of USDC to different stablecoins. In September 2022, the crypto speech announced it would auto-convert each user-held USDC connected the level to Binance USD (BUSD), the Binance-branded stablecoin issued by Paxos Trust Company. At the time, the speech didn’t uncover whether it planned to merchantability oregon person its reserves to different stablecoins
Binance has agelong been looking for caller stablecoins aft the New York Department of Financial Services ordered Paxos to halt issuing the dollar-pegged BUSD stablecoin. Binance aboriginal turned to TrueUSD (TUSD) to mitigate its stablecoin needs; however, TUSD depegged, and its issuance was halted by June 10.
Binance has since turned to different comparatively chartless stablecoin — FDUSD. The caller stablecoin issued by a Hong Kong-based institution has gained traction implicit the past fewer weeks aft Binance launched several trading pairs for the stablecoin, on with zero trading interest offers.
Related: USD-backed stablecoin aviator task launched by Pacific land federation of Palau
The emergence of FDUSD adjacent garnered attraction from Tether main exertion serviceman Paolo Adriono, who noted that Tether (USDT) was pressured down and USDC, its main competitor, was besides heavy redeemed.
Isn't it absorbing that USDt is being pressured down (slightly, wrong 10bps, conscionable to propulsion marketplace makers to react), and USDc, the main rival that you would expect being gaining from the situation, is redeemed heavy nevertheless, portion abruptly a rival calved 2 days…
— Paolo Ardoino (@paoloardoino) August 3, 2023USDC is the second-largest stablecoin by marketplace stock and was erstwhile seen arsenic the existent rival to the marketplace leader, USDT. However, successful the past year, USDC’s marketplace headdress has shrunk by astir half, falling from $44.5 cardinal astatine the commencement of the twelvemonth to $26 cardinal astatine the clip of writing.
Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.
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