Why Binance Introduced FDUSD Stablecoin
The CEO of Binance, Changpeng Zhao (CZ), recently explained that the introduction of the stablecoin FDUSD was a result of the terminated partnership with Paxos. This partnership had previously led to the launch of the USD-denominated BUSD, but New York state regulators intervened and halted the minting of new tokens by Paxos.
Binance’s Plans for Stablecoins
During a recent Twitter space, CZ revealed that Binance has no current plans to list its own stablecoin. Instead, the exchange intends to collaborate with other companies that specialize in stablecoin products. Binance recently added support for FDUSD, a stablecoin issued by a Hong Kong custodian called First Digital Trust.
Potential Future Partnerships
CZ mentioned that Binance has been actively cooperating with stablecoin projects from various regions, hinting at potential future partnerships. He stated that there is another upcoming partnership based on stablecoins that will be announced in the near future.
Diversifying Risks
According to CZ, the decision to collaborate with different companies on stablecoins stems from the belief that everything in the crypto industry carries some level of risk. By diversifying their partnerships, Binance aims to mitigate these risks.
Hot Take
Binance’s terminated partnership with Paxos and subsequent collaboration with other companies on stablecoins highlights the importance of adaptability and flexibility in the crypto industry. By exploring different partnerships and diversifying risks, Binance positions itself to navigate the ever-changing landscape of stablecoins effectively.
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