Binance’s CZ Placing Multiple Bets On Launching Rival To USDT

Crypto News: Changpeng Zhao or ‘CZ’, the chief executive officer of crypto exchange Binance, on Monday announced plans to list more stablecoins on its platform. In addition to the recent listing of new stablecoin First Digital USD (FDUSD) on July 26, 2023 on the exchange, the platform is set to add another US Dollar based stablecoin, he said. CZ had criticized the lack of transparency when it comes to the financial records of USDT, the largest USD stablecoin.

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Binance’s CZ Criticizes USDT Transparency

Speaking in a community session on Monday, the CEO said that USDT stablecoin, despite having a large market cap, did not provide an audit report yet. It is kind of like a black box due to the risk and uncertainty around it and yet, it is by far the largest stablecoin. He explained that the Paxos partnership was aimed at resolving the same issue. In February 2023, the New York Department of Financial Services had ordered Paxos to stop creating more of the dollar-pegged stablecoin BUSD.

“We are supporting multiple stablecoins given that the BUSD minting has been stopped in relation to the Paxos partnership. We are working with multiple other partners in different regions now to support the idea of further decentralization.”

Binance’s Own Algorithmic Stablecoin Project

CZ revealed that the crypto exchange was working on launching an algorithmic stablecoin. He explained plans to have as many bets as possible in stablecoins, considering the regulatory risks associated with them. The best thing to do is to diversify on the different types of stablecoins and see which ones survive the regulatory challenges, he added. The Binance CEO also warned that the stablecoins do continue to have different risk characteristics. It is very important to be transparent about financial records for stablecoin issuers.

Meanwhile, Tether in its latest quarterly report showed an increase in excess reserves by $850 million. It added that the consolidated assets exceed its consolidated liabilities.

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Anvesh reports major crypto updates around regulation, lawsuits and trading trends. Published around 1,000 articles and counting on crypto and web 3.0. He is currently based in Hyderabad, India. Reach out to him at [email protected] or twitter.com/BitcoinReddy

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