Paxos Proves Its Worth: Safely Redeems $7.9B BUSD without Market Turbulence
This achievement is a testament to Paxos’s strong risk management program and commitment to safeguarding customer assets. Paxos halted the minting of new BUSD tokens and ended its relationship with
According to the announcement, the firm has always prioritized customer protection and compliance, receiving the first New York Department of Financial Services (NYDFS) trust charter for digital assets in 2015.
Paxos strongly believes all stablecoin issuers should be subject to regular oversight, examination and approval requirements of a primary prudential regulator. Prudential regulators and independent third parties examine, audit and attest to our practices regularly to ensure we can withstand situations of external “stress” typical of the world’s most sophisticated financial institutions.
The firm said
Paxos’ ability to redeem nearly 50 percent of BUSD in circulation in just 32 days speaks to its commitment to clients and the strength of its risk management. All BUSD remains fully backed 1:1 with USD cash and cash equivalents held in custody with the company’s NYDFS Trust, and Paxos will continue to support BUSD in circulation for at least one year.
As a good faith actor that embraces transparency and complies with regulatory requirements, Paxos utilizes blockchain technology to develop real-world use cases to improve the financial system. Paxos is uniquely positioned in the market to address global, regulated enterprises’ blockchain and tokenization needs, with various digital assets like the USDP stablecoin and PAX Gold, partnerships with PayPal, Mercado Libre, and Bank of America, and the growth of its securities and commodities settlement networks.
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