Driven by an increasing role on crypto exchange giant Binance, the TrueUSD ($TUSD) stablecoin has become the fifth largest stablecoin by market capitalization.
Blockchain data by crypto intelligence firm Nansen shows that Binance, the world’s largest crypto exchange by trading volume, minted some $130 million worth of $TUSD in the past seven days.
With the recent gains, TrueUSD stablecoin’s circulating supply surpassed $1.1 billion, according to data by crypto price tracker CoinGecko, which is the highest level since last August.
$TUSD has toppled decentralized finance protocol Frax Finance’s native stablecoin frax (FRX) for fifth place in market value by growing 15% over the last week, crypto data platform DefiLlama shows.
$TUSD is a dollar-pegged stablecoin issued by crypto firm ArchBlock, previously known as TrustToken. Its value is fully backed by fiat assets, according to blockchain data provider ChainLink’s proof-of-reserve monitoring tool. In 2020, Asian conglomerate Techteryx acquired $TUSD’s intellectual property rights, TrustToken said at the time, separating the stablecoin from the decentralized lending protocol TrueFi.
Read more: TrueFi’s TRU Token Rallies Over 200% After Binance’s $TUSD Mint Sparks Speculation
$TUSD gains amid stablecoin market reshuffling
TrueUSD’s resurgence comes as Binance has been increasingly relying on the token after its USD ($BUSD) stablecoin became a prime target in a U.S. regulatory crackdown, The crackdown sparked rumors that Binance might consider giving a bigger role to $TUSD on its platform.
$TUSD’s growing presence on Binance represents a significant reversal, coming six months after Binance ditched $TUSD among other stablecoins from the platform’s trading pairs to consolidate trading liquidity and boost $BUSD.
Paxos, the U.S.-based regulated issuer of $BUSD, announced it would cease issuing $BUSD on Feb. 13, citing pressure from the New York Department of Financial Services (NYDFS), a regulatory agency. CoinDesk has also reported that the U.S. Securities and Exchange Commission (SEC) was preparing to sue Paxos for issuing unregistered securities.
The regulatory attention to $BUSD started a major reshuffling in the $135 billion stablecoin market, with top stablecoins including Tether’s USDT, Circle’s $USDC and $TUSD competing to partition $BUSD’s once $16 billion market share.
Read more: Binance USD's $16B Market Cap Up for Grabs as Paxos Regulatory Action Stirs Up Stablecoin Rivalry
$TUSD exchange reserves experienced a 39% gain between Feb. 13 and Feb. 22 driven mostly by Binance, crypto research firm CryptoQuant told CoinDesk last week.
Coinbase, which jointly launched $USDC, announced on Monday that it would delist $BUSD from the exchange citing failure to meet listing standards.
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