Binance CEO- Changpeng Zhao (CZ) is looking to bring smaller algorithmic stablecoins to market, in order to provide investors with more options beyond the current global stablecoin giants.
July 31 on Twitter: CZ cites risks associated with major stablecoins like USDT and BUSD.
Specifically: “Personally, I have not seen any USDT audit reports. I think most of the people I spoke to didn’t see this text either. So it’s like a black box because we don’t know.”
Even supposedly well-regulated and fully audited stablecoins like BUSD come with unforeseen risks.
On February 13, blockchain infrastructure platform Paxos Trust Company terminated its partnership with Binance and stopped minting new BUSD stablecoins, following an order from the New York Department of Financial Services.
Due to regulatory risks stability and transparency, CZ revealed that Binance is working on algorithmic stablecoins as well as diversifying partnerships with its stablecoins to spread potential risks.
Notably, CZ also announced plans to launch Binance’s First Digital USD in Hong Kong as well as targeting new stablecoin options in Europe.
First Digital USD is a programmable, USD-pegged stablecoin regulated and licensed in Hong Kong by First Digital Group. The company listed stablecoin FDUSD on Binance on July 26.
Binance continues to be the subject of volatile regulation. On July 28, CZ sought to dismiss a $1 billion lawsuit filed by the U.S. Commodity Futures Trading Commission against him and Binance, accusing the regulator of “excessive” jurisdiction.
On June 5, the U.S. Securities and Exchange Commission filed a lawsuit against Binance, CZ, and other affiliates, alleging that they were involved in unregistered securities sales, fraud, and conflict benefits.
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