Summary:
• TrueUSD’s (TUSD) circulating supply has more than doubled in the last two weeks, reaching over 2 billion tokens on March 13.
• TUSD’s rise has coincided with recent troubles affecting stablecoin rivals and their banking partners.
• TUSD holds $852.27 million of its U.S. Dollar funds at the embattled Signature Bank, which U.S regulators have taken control of.
TrueUSD Circulating Supply Reaches Over 2 Billion Tokens
TrueUSD (TUSD) is a little-known stablecoin that has recently seen a rapid increase in its circulating supply, surpassing 2 billion tokens on March 13th. This rise coincides with recent banking issues that have affected competitor stablecoins and their banking partners, giving TUSD an advantage in the market share of stablecoins on the Tron blockchain as it now ranks second by both circulating supply and transfer volume.
Banking Issues for Stablecoin Rivals
The troubles began to arise for Binance USD (BUSD) back in February when regulators ordered its issuer Paxos to cease other mints from production; CEO Changpeng ‚CZ‘ Zhao said Binance would support other stablecoins in response to this decline, leading to nearly 50 million TUSD tokens being minted and new trading pairs being added for it on the exchange platform. Blockchain analytical firm Santiment reported that TUSD’s adoption had reached a new high due to 73% of its supply now being held on exchanges – since June 2021 this figure had not been previously so high. Another notable competitor is USD Coin (USDC), whose issuer Circle revealed part of its reserve was held at Silicon Valley Bank which went into collapse around the same time as Silvergate and Signature Bank which caused a loss of confidence in USDC’s reserve security measures.
Signature Bank Involvement With TrueCoin
TrueCoin announced that it had paused minting and redemption services for some customers who utilised Signature Bank; according to records from TrueCoin’s reserves, $852m was held at Signature Bank prior to U.S regulators taking control over it on 12th March – other banks holding TUSD reserves include Prime Trust, First Digital, Capital Union, Manual and BitGo too but none are as significant as Signature Bank’s involvement with TrueCoin’s funds.
FDIC Takes Control Of Signature Bank
In response to U.S regulators taking control over Signature Bank, The New York State Department of Financial Services appointed FDIC as receiver who then transferred all deposits and assets from Signature bank into a new full-service bank called ‘Signature Bridge Bank’ – TrueCoin confirmed contact with FDIC regarding potential collaboration but no further details have been released so far about what this might involve or how long it will be until normal operations resume via the bank once again – however they did assure customers that no losses have occurred during this period thus far .