Binance’s BUSD Reserves Steady At $13 Billion, Represents 18% Of All Assets

BUSD, a stablecoin issued by Paxos, a New York-based blockchain infrastructure platform, continues to be one of the most dominant assets on Binance, the world’s largest cryptocurrency exchange by number of clients and trading volume.

BUSD remains dominant

DeFiLlama data for February 14 shows that BUSD accounts for more than 18% of all assets locked and managed on Binance. It is the third largest asset with over $13.3 billion worth of stablecoins locked in writing.

BUSD ranks third behind BNB, the native currency of the Binance ecosystem, and USDT, a rival stablecoin issued by Tether Holdings. Binance manages $17.61 billion worth of BNB and users have contributed $15.01 billion to the exchange.

Binance manages over $70 billion in various assets, the most popular being Ethereum tokens. There are also tokens from BNB Smart Chain (BSC), Tron, Avalanche and other blockchains. Binance currently manages $10.62 billion worth of BTC, up from about $8 billion at the beginning of January 2023.

Bitcoin price February 14
Bitcoin price February 14 | Source: BTCUSDT on Binance, TradingView

Excluding BNB, Binance has over $53 billion in assets under management.

Binance is the largest exchange in the world by the number of assets it manages. The second is OKX, an exchange with a TVL of over $7.6 billion, excluding the value of its own OKB token.

Paxos ordered to stop minting BUSD, USDT trading volumes soared

February 13, Paxos. declared that he received a Wells notice from the US Securities and Exchange Commission (SEC).

The agency, according to Paxos, has concluded that BUSD is a security and is considering enforcement action. This action is most likely a legal action. Paxos is expected to respond in writing explaining why the SEC’s assessment is incorrect.

Paxos claims that BUSD is not a security under US federal laws. They are “engaging with SEC staff on this matter and stand ready for vigorous litigation if necessary.”

In an update, Binance CEO Changpeng Zhao revealed that Paxos has received an order from New York regulators to suspend new BUSD minting.

Paxos has been allowed to process redemption requests from users.

Following this announcement, USDT trading volumes skyrocketed as users exchanged BUSD for other stablecoins, mainly USDT.

By early February 14, DeFiLlama data showed that $547.41 million was transferred to Binance, compared to $86.43 million that users transferred to the exchange on February 13th.

Function image from Binance, chart from TradingView

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