Binance stablecoin backer ordered to stop issuing token: Binance CEO Changpeng Zhao

New York’s chief monetary regulator has ordered Paxos, the corporate behind the stablecoin of the Binance cryptocurrency alternate, to cease issuing the token, Binance CEO Changpeng Zhao mentioned in a tweet on Monday.

The Binance USD (BUSD) stablecoin is issued and redeemed by New York-based Paxos, each of that are regulated by the New York Department of Financial Services.

The token, which is designed to maintain a gradual worth and extensively used at Binance, is backed by reserves of conventional money and U.S. Treasuries, in keeping with Paxos’ web site.

“We were informed by Paxos they have been directed to cease minting new BUSD by the New York Department of Financial Services (NYDFS),” Zhao tweeted.

“As a result, BUSD market cap will only decrease over time,” he mentioned, including that Paxos has assured Binance the funds have been absolutely coated by Paxos’ financial institution reserves.

Paxos and NYFSD didn’t instantly reply to request for remark despatched outdoors U.S. business hours.

Binance USD is the seventh largest cryptocurrency, with greater than $16 billion in circulation, in keeping with market tracker CoinGecko.

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