Binance CEO Changpeng Zhao said that they will offer investors different options apart from existing global stablecoins. Stating that they aim to bring different stablecoins to the market, Zhao said:
I have not seen any audit reports of USDT. I don’t think most people I talk to have seen that either. It’s kind of a black box because we don’t know.
Speaking at an event on Twitter, Changpeng Zhao pointed out that even a well-regulated and regulated stablecoin like Binance USD has unforeseen risks.
Addressing the risks of major stablecoins, Zhao stated that Tether is cautious due to its lack of transparency. “We should work with as many stablecoins as possible,” Zhao said.
We have a small team working on stablecoins in different non-high scale locations. Our approach is, given that everything has a risk, let’s diversify and see which grows bigger
CZ revealed that Binance is working on algorithmic stablecoins and is diversifying its partnerships to spread potential risk.
Binance ended its partnership with blockchain infrastructure firm Paxos Trust Company in February. It had stopped issuing BUSD due to regulatory pressures. On the other hand, Binance announced its new feature for high-risk tokens last week. It was stated that the changes were made within the framework of the feedback of the community. Binance noted that with this step, users will be aware of the risks.