Paxos, the leading blockchain infrastructure platform, announced that it processed more than $7.9 billion in BUSD redemptions in the 32 days since it stopped minting new BUSD tokens and ended its relationship with Binance on February 13, 2023. is its USD-backed stablecoin.
The redemption represented nearly 50% of the BUSD in circulation and was executed without any loss to Paxos customers or disruption to the market.
According to New York State Banking Law, Paxos has fully managed all client assets to avoid bankruptcy risk. Currently, all BUSD is custodied by the NYDFS Trust and fully backed 1:1 by USD and cash equivalents.
Paxos has committed to supporting BUSD in circulation for at least a year, noting that all of its other products are unaffected by BUSD redemptions.
Paxos CEO Charles Cascarilla said: “We are proud to navigate this challenging situation with transparency and integrity, providing our customers with the stability and confidence they rely on us. “We remain committed to our mission of creating a trusted, open financial infrastructure for the blockchain ecosystem.”