Japanese Banking Giant Will Launch Stablecoin

Previously, Stablecoin owned by the world’s largest crypto exchange, binance, BUSD now occupies the fourth position in market capitalization among other stablecoins, following a decline of more than USD 1 billion or equivalent to IDR 15 trillion (assuming exchange rate of IDR 15,015 per US dollar) in the last 30 days , according to data from Coinmarketcap.

Reporting from Cointelegraph, Tuesday (20/6/2023), the BUSD market capitalization reached USD 4.3 billion or the equivalent of IDR 64.5 trillion, down 29 percent from USD 5.54 billion or the equivalent of IDR 83 trillion on May 18.

The stablecoin has been on a downward trend since December 2022, when its market capitalization was USD 23 billion or equivalent to IDR 345.3 trillion.

The decline in the BUSD stablecoin market cap is in line with the major developments surrounding Binance after FTX’s dramatic collapse in November 2022.

In December 2022, a report indicating the US Department of Justice will target Binance resulting in net withdrawals of USD 3.6 billion or equivalent to IDR 54 trillion in seven days.

The partnership between Binance and Paxos Trust created the stablecoin BUSD in September 2019. Paxos issues and owns the product, while Binance licenses the brand.

For Paxos, the partnership brought new challenges. In February, the company reportedly received a Wells notice from the US Securities and Exchange Commission declaring BUSD an unlisted security.

The most recent blow came from the SEC’s lawsuit against Binance on June 5 for allegedly offering unregistered securities. US regulators pressed 13 lawsuits against the exchange, including an unlisted offering and sale of BNB Coin.

The dominance of the US dollar-pegged stablecoin market has seen several ups and downs over the past year, with Tether USDT climbing back to an all-time high, although most stablecoin market caps have declined.