Blockchain and tokenization infrastructure platform Paxos announced it will end its relationship with Binance for the branded stablecoin BUSD.
Effective February 21, Paxos will cease issuance of new BUSD tokens as directed by and working in close coordination with the New York Department of Financial Services (NYDFS). Paxos Trust will continue to manage BUSD dollar reserves.
The company reiterates that all BUSD tokens issued by Paxos Trust have been backed 1:1 with US dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts.
BUSD will remain fully supported by Paxos and redeemable to onboarded customers through at least February 2024. 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…