Blockchain infrastructure platform Paxos will stop issuing new BUSD stablecoins for Binance amid ongoing investigations by New York regulators.
Paxos has officially announced today that it will end its partnership with Binance for the production of the BUSD stablecoin. Based on the instructions and coordination between Paxos and the New York Department of Financial Services (NYDFS), the issuance of new BUSD tokens will be stopped from February 21 (21 March 1401).
to report Cointelegraph, Paxos confirmed that all existing BUSD tokens will be backed and redeemable by the Paxos Trust until at least February 2024. The company says customers can convert their funds into dollars or its other stablecoin called USDP. Part of the Paxos statement reads:
Paxos noted that the NYDFS oversees Paxos Trust and four top accounting firms also audit the company, citing public disclosure reports. Paxos will continue to maintain its strong regulatory capital to offer the gold-backed stablecoin USDP and Pax Gold (PAXG).
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