Stablecoin news has not been very positive lately. However, Binance USD (BUSD) will be added to the list of cryptocurrencies available on Crypto.com. Surprising, considering that Binance is a rival exchange to the crypto-banking platform.
The addition of the BUSD on Crypto.com
The Crypto.com platform is well known among users for its banking offerings, but also for its crypto-currency exchange service.
Among the hundred or so crypto-currencies and stablecoins available, the exchange now offers the Binance USD (BUSD). With a capitalisation of $18 billion, the BUSD has risen to third place in the stablecoin ranking. Until last week, third place was occupied by UST, the Terra blockchain stablecoin (LUNA) which recently collapsed.
https://t.co/A7lhUEyVZW Exchange lists Binance USD $BUSD
Trade the $BUSD $USDT pair now.
Sign Up https://t.co/GBTPzwVBuy pic.twitter.com/XRfBW8lUGW
– Crypto.com Institutional (@Cryptocom_Insto) May 17, 2022
The BUSD is a centralised digital asset from the competing exchange Binance, whose value is linked to the dollar rate. It is also important to note that it is approved by the New York State Department of Financial Services (NYDFS).
Obtaining this cryptocurrency on the platform is done through the BUSD/USDT pair. As USDT is itself a stablecoin pegged to the dollar, the exchange within the pair has a quota of 1 BUSD for 1 USDT.
A recent distrust of stablecoins
In light of the latest news regarding the Terra ecosystem (LUNA) and its UST stablecoin, the Crypto.com platform’s reliance on a competing token can be seen as an implicit endorsement of the robustness of BUSD.
Other stablecoins have seen their prices fluctuate despite a promise of stability induced by their indexation to dollar reserves. This unexpected volatility has created mistrust among investors.
This mistrust could lead to platforms listing tokens from competing platforms, and also reflects uncertainty about Tether (USDT), the current leader in stablecoins. The impact of this instability on the crypto ecosystem will be something to watch in the days and weeks ahead.
