Binance Holds 90% of TrueUSD Supply Amid Significant Transfer Activity
Binance platform is reported to be holding 90% of the total supply of TrueUSD following a substantial transfer activity amounting to approximately $2 billion to this centralized exchange (CEX).
The current market capitalization of TrueUSD stands around $3 billion. Data from DefiLlama indicates that $2.7 billion is currently stored on the Binance exchange. This data was updated after Binance disclosed a series of wallet addresses to monitoring entities.
TrueUSD is presently the 5th largest stablecoin by market size, experiencing significant growth bolstered by support from Binance.
List of coins on Binance
As of June 30, Binance continues to waive maker transaction fees for TUSD spot and margin pairs. This move has driven a surge in TUSD trading volume, consolidating liquidity predominantly on Binance.
Daily trading volume of TUSD on decentralized exchanges (DEXs) averaged around $2 million in Q2 2023. However, on Binance, this figure surged to approximately $2 billion.
Out of the circulating 3 billion TUSD tokens, around $2.2 billion are on the Tron blockchain, with the remaining $700 million approximately on Ethereum.
Currently, the reason why Binance is the largest custodian of TUSD remains unclear, especially given the legal challenges involving custodian partner Prime Trust. The investor community has been speculating about whether TUSD's asset backing has been impacted due to regulatory issues faced by Prime Trust.
Read more: Prime Trust halts withdrawals on Nevada officials' orders - TUSD implicated?
Earlier this year, hundreds of millions of dollars in TUSD collateral were held by Prime Trust. Last week, the financial regulator of Nevada asserted liquidity issues at Prime Trust, primarily holding $80 million in AUDIO tokens.
However, TUSD auditors have maintained that the stablecoin only has exposure to $26,000 in collateral value with Prime Trust. Additionally, Prime Trust has affirmed that users can still deposit USD and mint TUSD through other banking partners of the company.
At the time of writing, Binance has not provided detailed comments on the aforementioned data.
