Paxos to stop minting BUSD stablecoins for Binance

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

Paxos officially announced on Feb. 13 that the firm will end its relationship with Binance for the branded USD-pegged stablecoin BUSD.

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

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

“This action does not impact our ability to continue serving new or existing customers, our continued dedication to grow our staff or fund our business objectives. Paxos remains committed to becoming the global leader in the blockchain tokenization infrastructure […]”

Paxos also noted that Paxos Trust is a regulated institution overseen by the NYDFS and audited by a top-four accounting firm, referring to public transparency reports. The firm 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 further information will be added as it becomes available.