During an X AMA on 31 July 2023, Binance CEO Changpeng Zhao (CZ) answered some essential questions about projects, the possibility of a new stablecoin by Binance, the rising challenges and opportunities for the crypto market, and much more. In one of the questions, CZ was asked to elaborate on his thoughts about the future of cryptocurrencies and their potential impact on the financial industry.
Additionally, CZ was asked about some stablecoin news that came out recently and if he had anything to share.
In the answer, CZ informed them that Binance had listed FDUSD, a stablecoin issued by a Hong Kong custodian with a trust license. He mentioned a partnership with a company named First Digital related to FDUSD.
FDUSD is a reserve-backed stablecoin, launched on the Ethereum and BNB Chain networks, with plans to be issued on other blockchains.
Binance Set to Work with More Partners
During the AMA, CZ hinted that Binance would work with more partners to diversify stablecoins. The goal is to minimize the potential risk of depending on a single stablecoin. He also confirmed that Binance has no shortage of partners to do this.
Regarding other purported stablecoins, the Binance CEO revealed that the exchange is working on a partnership with another stablecoin, but he does not want to reveal more details. CZ said that Binance also has teams researching and developing algorithmic stablecoins.
The scale of the project is not large, but it will be deployed across multiple regions.
He explained that the increased efforts in that field come from the suspended collaboration with Paxos. The New York Department of Financial Service ordered the latter earlier this year to stop issuing the Binance USD (BUSD) stablecoin.
Apart from deploying FDUSD in Hong Kong, CZ said he also plans to bring this stablecoin to the European market.
Overall, CZ’s responses emphasize testing a variety of stablecoins, working with various partners to find the most effective stablecoin.