Crypto market is ‘overly dependent’ on stable coins, lacks transparency, TUSD poses risk: KAICO

The past few months have seen a period of turmoil for the largest stablecoins. In February, New York state regulators ordered Paxos to stop minting Binance USD (BUSD), the third largest stablecoin at the time. The following month, the collapse of Silicon Valley Bank (SVB) temporarily froze a large portion of USDC cash reserves, affecting Maker’s DAI stablecoin. Last month, USDT endured selling pressure in major stablecoin liquidity pools, causing panic among traders and TUSD facing an outburst from its custodial partner.