Paxos, the company that issues the branded Binance USD (BUSD) stablecoin, has been instructed to stop issuing the stablecoin by its regulator.
“Paxos has informed us that they have been directed to cease minting new BUSD by the New York Department of Financial Services (NYDFS), BUSD is a stablecoin wholly owned and managed by Paxos,” Binance said in a statement. “As a result, BUSD market cap will only decrease over time. Paxos will continue to service the product, manage redemptions, and will follow-up with additional information as required.”
Update:Paxos confirmed that BUSD will be redeemable until at least February 2024. It will continue to issue the Paxos Dollar (USDP) stablecoin, so the NYDFS instruction seems to be purely related to Binance USD.
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