Binance has been exploring lesser-known stablecoins after pausing its use of USD Coin (USDC). Coinbase CEO Brian Armstrong’s comments during an earnings call raised eyebrows, as he mentioned that Binance had moved some of its funds from USDC to another stablecoin. While the market cap of USDC has remained steady, it appears that Binance has converted a portion of its holdings to other stablecoins. On-chain data suggests that Binance has been redeeming USDC for US dollars, possibly to support its new stablecoin called First Digital USD (FDUSD). Binance has been searching for alternative stablecoins since the New York Department of Financial Services ordered Paxos to stop issuing the Binance-branded stablecoin BUSD. After turning to TrueUSD (TUSD), which later depegged, Binance has now turned to FDUSD. FDUSD has gained traction recently, with Binance launching trading pairs and zero trading fees for the stablecoin. The rise of FDUSD has even caught the attention of Tether’s CTO, Paolo Ardoino. USDC, once seen as a competitor to USDT, has seen its market cap decrease significantly over the past year.
