The news about stablecoins has not been very positive lately. Binance USD (BUSD), however, 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 capitalization of $18 billion, BUSD has risen to third place in the stablecoin ranking. Until last week, the third spot on the podium was occupied by UST, the Terra blockchain stablecoin (LUNA) that recently collapsed.
BUSD is a centralized digital asset from rival exchange Binance, whose value is backed by the price of the dollar. 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 indexed 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 the 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.
A distrust that could therefore push platforms to list tokens from competing platforms, and which also reflects an uncertainty regarding Tether (USDT), the current leader of stablecoins. The impact of this instability on the crypto ecosystem will now have to be observed in the days and weeks to come.
