Paxos to stop minting BUSD stablecoins for Binance

Blockchain infrastructure platform Paxos will suspend the issuance of new BUSD (BUSD) stablecoins amid an ongoing investigation by New York regulators.

Paxos officially announced On Feb. 13, the firm will end its relationship with Binance regarding the BUSD branded stablecoin pegged to the US dollar.

Starting February 21st, Paxos will cease issuing new BUSD tokens in accordance with guidance and in agreement with the New York City Department of Financial Services (NYDFS).

Paxos emphasized that all existing BUSD tokens will remain fully collateralized and redeemable through the Paxos Trust Company “until at least February 2024.” Customers will be able to redeem their USD funds and convert their BUSD tokens into another Paxos-issued stablecoin, the Pax Dollar (USDP), the firm said, adding:

“This action does not affect our ability to continue serving new or existing customers, our continued commitment to growing our workforce or funding our business goals. Paxos continues to strive to be the global leader in blockchain tokenization infrastructure. […]”

Paxos also noted that the Paxos Trust is a regulated institution controlled by the NYDFS and audited by four leading accounting firms. referring to public transparency reports. The firm will continue to maintain its strong regulatory capital to operate the USDP as well as the gold-backed Pax Gold (PAXG) stablecoin.

This is an evolving story and more information will be added as it becomes available.

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