Paxos to Halt Relationship with Binance, Encourages Customers to Convert BUSD Tokens to Pax Dollar (USDP)
Paxos, the leading regulated blockchain and tokenization infrastructure platform, has announced that it will end its relationship with Binance for the BUSD stablecoin. This move comes following the directive of the New York Department of Financial Services (NYDFS) and will go into effect on February 21, 2023.
Despite the end of the relationship with Binance, Paxos has confirmed that all BUSD tokens issued by Paxos Trust will remain fully-backed by US dollar reserves. In addition, these tokens will continue to be redeemable through Paxos Trust Company at least until February 2024. Customers will have the option to redeem their funds in US dollars or convert their BUSD tokens to Pax Dollar (USDP), another regulated US dollar-backed stablecoin issued by Paxos Trust.
In recent minutes, the price of BUSD has experienced a sharp decrease, dropping from $1.00 to $0.995 before rebounding back to $0.9991 on the Binance exchange at the time of writing. Despite this temporary drop, the BUSD token remains one of the most widely used stablecoins in the market and is trusted by a large number of investors and traders for its stability and reliability.
Paxos remains committed to providing its customers with a secure and transparent platform for their assets. The company has emphasized that this move will not impact its ability to serve new or existing customers, or its plan to grow its staff and achieve its business objectives. In fact, Paxos continues to maintain strong regulatory capital and a robust corporate balance sheet to support its long-term goals.
Paxos has established itself as a leading player in the blockchain tokenization infrastructure space and is relied upon by several global enterprises as they move towards a faster, safer, fairer and more efficient financial system. The company has raised over $540 million from leading investors and has a presence in New York, London, and Singapore.
As AZCoin News recently reported, Binance CEO Changpeng Zhao has given an update on the status of Binance USD (BUSD), a stablecoin owned and managed by Paxos. The New York Department of Financial Services has ordered Paxos to stop issuing new BUSD, but the company will continue to manage redemptions and assure that the funds are secure and backed by reserves. In his tweet, CZ also mentioned the ongoing lawsuit between the SEC and Paxos, noting that a ruling that BUSD is a security would have major impacts on the crypto industry in jurisdictions where it applies.
Read more:
- Binance USD (BUSD) Peg Shatters As Value Falls Below $1 After SEC Accuses Paxos Of Unregistered Securities
- New York Regulators Crack Down On Crypto: Binance’s BUSD Token Creation Halted
- Paxos, Issuer Of USDP And Binance USD (BUSD) Stablecoins, Under Investigation By NYDFS