Binance is expanding its own stablecoin
Binance continues to grow its own stablecoin BUSD with the help of the PAX Treasury. Another batch of BUSD will soon be entering the market, further bolstering bulls.
Another $10M Set to Enter the Market
The cryptocurrency market will soon receive a much-needed boost. 10,000,000 Binance USD (BUSD) has just been issued by PAX Treasury. PAX has been a long-time partner with Binance and has issued BUSD in the past. As BeinCrypto reported, a separate batch of 5M BUSD was minted by PAX earlier this month. In January, PAX also minted another $5.7M worth of BUSD. The Binance-PAX relationship has been ongoing since at least 2019.
The latest minting of BUSD was reported by Whale Alert (@whale_alert) which picked up on the transaction earlier today.
?? 10,000,000 #BUSD (10,000,000 USD) transferred from PAX Treasury to unknown wallet
There are many different types of cryptocurrency wallets. Still, unlike the physical wallet in your back pocket, a cryptocurrency wallet... More
— Whale Alert (@whale_alert) February 24, 2020
The situation is curious given that Binance was allegedly suffering from a USDT shortage just a few weeks ago. Traders reported being unable to place longs and receiving error messages. The problem has since subsided, but Binance may be issuing BUSD to further boost liquidity in light of these problems.
BUSD Remains Tiny Compared to Stablecoin Giants
Although backed by one of the largest cryptocurrency exchanges in the world, Binance USD (BUSD) has struggled to remain relevant in this fast-changing market.
Currently, it boasts a market capitalization of just $59M. However, this has spiked considerably compared to what it was just two months ago.
Despite the lack of liquidity, BUSD-based trading pairs continue to be listed on Binance. In September, it was so bad that someone was able to purchase BTC for a stunning $1,800 on the BUSD/BTC trading pair.
The cash injection of another 10M BUSD might give bulls some relief after a choppy market this past weekend. Bitcoin failed to recapture and hold the $10,000 price point and is currently trading around $9,800.
