Important statements came from Binance CEO today. In particular, stablecoins are at the center of the explanations. Let’s look at the details.
Binance and new listing plans
Binance CEO Changpeng Zhao has announced plans to list more stablecoins on its platform. The new stablecoin First Digital USD (FDUSD) was listed on the exchange on July 26, 2023. In addition, he said that the platform is preparing to add another USD-based stablecoin. CZ criticized the lack of transparency when it comes to the financial records of USDT, the largest USD stablecoin.
Speaking at a community session on Monday, Binance CEO made important statements. He said that although the USDT stablecoin has a large market capitalization, it has not yet submitted an audit report. He stated that it was like a kind of black box because of the risk and uncertainty around him. USDT is still the largest stablecoin by far. Binance CEO explained that the Paxos partnership aims to solve the same problem. In February 2023, the New York Department of Financial Services ordered Paxos to stop creating more than the dollar-pegged stablecoin BUSD.
Support for more stablecoins
At this point, Binance CEO states that the printing of BUSD has been stopped regarding the Paxos partnership. It also highlights that they support multiple stablecoins. They are currently working with multiple other partners in different regions to support the idea of greater decentralization. CZ revealed that the crypto exchange is working to launch an algorithmic stablecoin. CZ considers the legal risks associated with stablecoins. Accordingly, he announced that they plan to bet as much as possible on stablecoins.
CZ emphasizes that the best thing to do is to diversify the different types of stablecoins. He also added that the key is to see which ones survive regulatory challenges. Binance CEO also warned that stablecoins continue to have different risk characteristics. Being transparent about financial records is crucial for stablecoin issuers. Meanwhile, Tether showed an increase of $850 million in excess reserves in its latest quarterly report. He added that consolidated assets exceeded its consolidated liabilities.
Future plans for stablecoins on Binance
Binance CEO CZ has announced plans to expand the stablecoin offering on the platform, despite concerns about the transparency of USDT, the leading stablecoin. Binance is exploring partnerships with multiple stablecoin projects. On the other hand, considering launching an algorithmic stablecoin, it tries to reduce the legal risks associated with stablecoins.
As the crypto market continues to evolve, Binance is positioning itself to adapt to changing regulations and explore innovative solutions to ensure stability and trust in the growing stablecoin market.
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