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In keeping with Binance CEO Changpeng Zhao, the alternate had to briefly pause processing USDC withdrawals because of insufficient USDC reserves on the platform. The pause was necessitated because it wanted to finish a token swap. Binance holds a major chunk of its stablecoin holdings, over $11.5 billion, in the Paxos-issued BUSD, a fiat-backed stablecoin based by Binance and Paxos, according to Nansen information.

U.S officials have proven a particular interest in stablecoin regulation, especially following the current Terra Luna crash. In Might, crypto markets went into a freefall that led stablecoins TerraUSD (UST) to depeg from the dollar, which in turn, caused its linked cryptocurrency Luna to crash as well. As of a result, many Terra and Luna buyers noticed their investments vanish in a matter of days. Inside a couple of weeks of Terra’s downfall, the crypto market plunged once more and a number of other crypto corporations introduced layoffs and froze withdrawals to slash costs as a result of extreme market circumstances. Some companies like Three Arrows Capital and Celsius have since filed for bankruptcy.

Because they’re solely digital, cryptocurrency wallets (even when well-protected) are prone to a stage of online interference. It’s not much different from having your checking account data saved online – it’s secure and also you would possibly by no means experience a breach, but the danger is at all times there. Blockchains are designed to be hack-resistant, yet there’s nonetheless the potential of malware meddling in your crypto.