Binance Coin’s Price Slumps by 5%, Zhao Cautions about Further Decline
BUSD Issuer Paxos Declares Terminating the Stablecoin’s Issuance and Its Ties with Binance
In addition to this, on the 21st of February, the stablecoin issuer will stop issuing the token in line with the directive of the NYDFS. In its recent blog post, along with the aforementioned declaration, Paxos asserted that the platform has always maintained a 1:1 ratio of support by the USD-dominated reserves for the BUSD tokens that it has issued up till now. The respective reserves have been kept in separate accounts.
The company added that the BUSD tokens will still be completely backed as well as redeemable to the clients till 2024’s February. According to Paxos, the existing as well as the upcoming consumers will be permitted to extract their funds or convert the BUSD tokens in their possession to Pax Dollar (USDP). It is another stablecoin issued by Paxos and backed by the USD.
The platform stressed the importance of maintaining a resilient regulatory capital for the protection of the clients. Apart from that, it also emphasized a resilient corporate balance sheet. In the words of the firm, this would be assistive for it to accomplish its long-term objectives.