Paxos to stop minting BUSD stablecoins for Binance

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Blockchain infrastructure platform Paxos will stop issuing new BUSD (BUSD) stablecoins amid ongoing investigation by New York regulators.

Paxos officially announced in February. 13 that the company is terminating its relationship with Binance for the US dollar-pegged stablecoin BUSD.

Starting in February. 21, Paxos will stop minting new BUSD coins, in accordance with directions and coordination with the New York Department of Financial Services (NYDFS).

Paxos confirmed that all existing BUSD tokens will remain fully backed 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 to another stablecoin issued by Paxos, Pax Dollar (USDP), the company said, adding:

“This action does not affect our ability to continue to serve new or existing customers, our continued dedication to growing our people or financing our business goals. Paxos remains committed to becoming the world leader in blockchain token infrastructure.” […]”

Paxos also noted that the Paxos Trust is a regulated institution supervised by the NYDFS and audited by a top-four accounting firm, referring to the Public Transparency Reports. The company will continue to maintain its strong regulatory capital to operate USDP as well as its gold-backed stablecoin Pax Gold (PAXG).

This is a developing story, and more information will be added as it becomes available.