Binance shifted part of its USD Coin (USDC) reserves into another stablecoin, but its market capitalization remained unchanged. This was disclosed by Coinbase CEO Brian Armstrong, according to Cointelegraph.
USDC is Coinbase’s preferred asset, with the company acting as a co-emitter of the token.
A user going by NotChaseColeman noted that Binance CEO Changpeng Zhao and Tron co-founder Justin Sun began converting USDC into fiat via USDT. But, in his words, Tether is unlikely to be able to redeem billions of dollars.
He also noted the growth of the True UDS (TUSD) stablecoin. The user added that around 90% of the TUSD supply is controlled by Binance. Over the past weeks the asset’s share of market trades rose from virtually 0% to about 20%.
According to CoinGecko, the market capitalization of the \”stablecoin\” stands at nearly $3 billion. Notably, on July 29 the metric surged by $250 million.
Additionally, analysts ChainArgos noted positive momentum for the new stablecoin First Digital USD (FDUSD), promoted by Binance. According to them, the number of holders and the volume of trades for the asset is growing day by day.
FDUSD is a USD-backed asset, launched by the Hong Kong-based company First Digital Labs. The coin is available on the Ethereum and BNB Chain networks. Its daily trading volume amounts to $17 million with a market capitalization of $260 million.
The growth of FDUSD drew the attention of Tether’s chief technology officer Paolo Ardoino. He noted that USDT and its main competitor—USDC—have come under pressure because of it.
Earlier, Binance updated its commission-free trading program and removed fees for the BTC/FDUSD pair.
Earlier in August, Zhao criticised the stablecoin USDT, calling it a ‘black box’ with a ‘certain’ level of risk. He said the platform is working on a new algorithmic ‘stablecoin’ and is expanding partnerships with other issuers to diversify.