Blockchain and tokenization infrastructure platform Paxos announced that it has completed redemption of over $7.9B Binance USD (BUSD) in 32 days.
Paxos announced on February 13, 2023 that it has suspended the issuance of new BUSD tokens and terminated its association with Binance. Paxos was able to redeem these assets without causing any losses to customers or disrupting the market, demonstrating the company's robust risk management program and unwavering dedication to protecting customer assets. Furthermore, BUSD has maintained its 1:1 peg to the US dollar on various third-party crypto exchanges, without any significant price deviation.
According to the press release, Paxos will continue to support BUSD in circulation for at least one year. "All BUSD remains fully-backed 1:1 with USD cash & cash equivalents held in custody with the company’s NYDFS Trust", the firm said.
The firm also noted all other Paxos products remain unaffected by BUSD redemptions.