The TrueUSD (TUSD) stablecoin has attained $1.12 billion in market capitalization, making it the fifth-largest stablecoin in the crypto market. The latest move comes after the leading exchange Binance bought an additional $130 million worth of TUSD tokens.
TUSD is a stablecoin issued by the financial company TrustToken. It is pegged to the U.S. dollar on a 1:1 ratio. The last peak in market capitalization achieved by TUSD was $1.68 billion in June 2021.
TUSD Overtakes FRAX in Stablecoin Rank
Becoming the fifth-largest stablecoin by market capitalization ranking saw TUSD overtaking the fractional-algorithmic dollar-pegged stablecoin, FRAX. The latter has a current market capitalization of $1.04 billion.
According to the price tracking platform CoinGecko, TUSD is among the top gainers in the stablecoin family, with a 15% increase in market capitalization within the past week.
Source: CoinGecko
Stablecoins such as USDT, USDC, BUSD, and DAI remain dominant assets in the stablecoin family.
Binance Buys 130M TUSD
TUSD’s recent uptrend can be attributed to investments from Binance. Over the past week, Binance minted $130 million worth of TUSD. Recall that the company had minted about $50 million in TUSD two weeks ago.
Binance’s embrace of the TUSD stablecoin comes after its flagship stablecoin, BUSD, was attacked by financial regulators. Paxos, the BUSD issuer, was sent a Wells notice by the U.S. Securities and Exchange Commission (SEC). The regulatory agency claims that BUSD is a security and should have been registered before being issued to U.S. investors.
Shortly after, Paxos revealed that it would stop issuing the BUSD stablecoin, following the order of the New York Department of Financial Services (NYDFS).
Following Paxos’ crackdown by financial authorities, Binance noted that it would explore other stablecoins. This means reduced involvement with BUSD.
Aside from Binance, the American-based exchange Coinbase has announced its plan to delist BUSD from its platform on March 13th. The reason cited was that the stablecoin no longer met the exchange’s listing standards.
The declining participation in BUSD rubs off on its market capitalization, as it dropped from a $15 billion mark to $10 billion.
