Paxos Halts Minting New BUSD Tokens
Existing Tokens Remain Fully-Backed and Redeemable Through Paxos Trust Company. Paxos no longer mints new BUSD, but allows customers to redeem BUSD for USD.
Paxos has ended its relationship with Binance for the branded stablecoin BUSD.
Effective February 21, 2023, Paxos ceased issuance of new BUSD tokens as directed by and working in close coordination with the New York Department of Financial Services (NYDFS). Paxos Trust, a regulated institution overseen by the NYDFS and audited by a top-four accounting firm, will continue to manage BUSD dollar reserves. All BUSD tokens issued by Paxos Trust have and always will be backed 1:1 with US dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts. BUSD reserves are fully-backed and the instruments held by Paxos in reserve as of close of business February 10, 2023 are also available here.
Paxos has always prioritized the safety of its customers’ assets. That was true at our founding and remains true today. BUSD will remain fully supported by Paxos and redeemable to onboarded customers. New and existing Paxos customers will be able to redeem their funds in US dollars or convert their BUSD tokens to Pax Dollar (USDP), a regulated US dollar-backed stablecoin also issued by Paxos Trust. For customers looking for more information, please visit help.paxos.com.
USDP, Pax Gold (PAXG) and Paxos Business Going Forward
Paxos continues to maintain strong regulatory capital to protect customers, as well as a strong corporate balance sheet to support our long-term business goals. 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 relied upon by global enterprises as they transition towards faster, safer, fairer and more efficient financial systems.
To learn more about Paxos’ commitment to transparency and regulation, visit our website.