During a recent Twitter spaces, Binance CEO Changpeng Zhao stated that the exchange will begin diversifying its stablecoin holdings.
Changpeng Zhao also said that due to the SEC’s crackdowns on stablecoins, investors may look to algorithmic stablecoins not pegged to 1 USD.
The SEC is currently investigating Paxos, the company behind Binance’s BUSD stablecoin.
Binance CEO on the future of stablecoins, the SEC and BUSD
A few days after the SEC announced their investigations into crypto stablecoins and stablecoin companies such as Circle (USDC) and Paxos (BUSD), leading crypto exchange Binance minted $50 million TruseUSD (TUSD).
The coins were minted 2 days after Changpeng Zhao said Binance will start diversifying their stablecoin holdings, but not moving away from Binance’s BUSD.
With SEC pressure on USD-backed stablecoins, Changpeng Zhao believes investors will turn to stables that are not pegged to 1 USD and various algorithmic stablecoins.
Changpeng Zhao from the recent Twitter livestream:
I think with the current stances taken by the regulators on the U.S. Dollar-based stablecoin, the industry will probably move away to a non-U.S. Dollar-based stablecoin, back to algorithmic stablecoins.
To be honest, BUSD was never a big business for us, when we started I actually thought the BUSD project may fail, so we actually don’t have very good economics on that collaboration
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Changpeng Zhao also stated that the exchange will investigate Euro and Yen-pegged stablecoins, in addition to continued support for USDC and USDT, if interest in BUSD diminishes.