BUSD holders migrate to rival dollar-pegged stablecoin tether after NYDFS told Paxos to stop minting BUSD tokens over its relationship with Binance. Reports godbole17.
Binance's dollar-pegged stablecoin BUSD turned volatile in the wake of regulatory action against its issuer Paxos Trust Co.
Early Monday, BUSD, designed to maintain a 1:1 value with the U.S. dollar, slipped into a discount of 0.9950 against its rival tether on Binance, according to data provided by Kaiko. Tether is the world's largest dollar-pegged stablecoin by market value. The de-pegging to the lowest level in over a year happened after the New York Department of Financial Services ordered Paxos Trust Co, which issues and lists BUSD, to stop minting more of its tokens.
Paxos announced that it would cease the issuance of new BUSD tokens from Feb. 21 and end its relationship with Binance while assuring BUSD holders that every coin is backed by 1:1 with . Further, the company will continue to manage redemptions of the product, according to a Binance statement.""Essentially, by halting issuance of BUSD, there is no way for the stablecoin to grow. BUSD trading pairs will still be supported by Binance, but traders will gradually start to migrate to other stablecoins, which could be causing the discount on BUSD," Kaiko's research director Clara Medalie told CoinDesk.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Paxos to Stop Issuing Dollar-Pegged Token BUSD$BUSD is already losing its $1 peg following the halting of issuance operations announced by Paxos
Read more »
SEC lawsuit against Paxos over BUSD baffles crypto communityOne community member called out SEC chairperson Gary Gensler and said that the official is on an “unhinged, unchecked crusade against crypto.”
Read more »
Paxos to stop minting BUSD stablecoins for BinancePaxos customers will be able to redeem their funds in USD and convert their BUSD tokens to another Paxos-issued stablecoin, Pax Dollar.
Read more »
SEC plans to sue crypto firm Paxos over Binance tokenThe Securities and Exchange Commission has told crypto firm Paxos Trust Co. that it plans to sue the company for violating investor protection laws,...
Read more »