Tether (USDT), a cryptocurrency stablecoin backed by the U.S. dollar and owned by iFinex, has been favored by investors seeking stability in the cryptocurrency market. Despite its popularity, concerns about transparency and reserve management have cast doubt on its reliability. In light of these uncertainties, Changpeng Zhao, known as CZ and the CEO of Binance, has announced plans to introduce more stablecoins on the Binance platform to offer users additional options beyond USDT.
The recent listing of First Digital USD (FDUSD) on July 26, 2023, was the first step in this expansion of stablecoin offerings. CZ also confirmed that another stablecoin, backed by the U.S. Dollar, will be added shortly. The move is part of Binance’s efforts to provide users with more stable and trustworthy options within the cryptocurrency ecosystem.
CZ has expressed concerns about the lack of transparency in USDT’s financial records, highlighting the absence of an audit report. To address this issue, Binance has partnered with Paxos, with the aim of promoting greater transparency and reliability in stablecoin offerings. However, it’s worth noting that Paxos faced regulatory scrutiny earlier in the year, when the New York Department of Financial Services ordered a halt to the creation of its dollar-pegged stablecoin, BUSD.