Paxos, the premier regulated blockchain and tokenization infrastructure platform, has announced that its partnership with Binance for the branded stablecoin BUSD will come to an end.
Paxos will stop issuing new BUSD tokens on February 21, as ordered by and in close collaboration with the New York Department of Financial Services (NYDFS). Paxos Trust, a registered entity supervised by the New York Department of Financial Services and audited by a top-four accounting firm, will continue to maintain BUSD currency reserves. All BUSD tokens created by Paxos Trust have been and will continue to be backed 1:1 with US dollar-denominated reserves, which are entirely segregated and maintained in separate distant accounts. The BUSD reserves are fully supported, and the instruments held in reserve by Paxos as of the close of business on February 10, 2023 are also available here.
Paxos has always placed a premium on the security of its clients’ assets. That was true when we were founded and it is still true now. Paxos will continue to support BUSD and make it available to onboarded clients until at least February 2024. Paxos clients, both new and current, will be able to redeem their assets in US dollars or convert their BUSD tokens to Pax Dollar (USDP), a regulated US dollar-backed stablecoin also issued by Paxos Trust. Customers seeking further information should find more information on its website.