Paxos has facilitated the redemptions of about $2.8B in BUSD since halting new mints on February 21.
Paxos Trust Company, a New York-based financial institution and technology company specializing in blockchain, has informed its employees that it is in constructive discussions with the United States Securities and Exchange Commission (SEC) on the possible reopening of BUSD. Paxos has, however, indicated that it would defend its BUSD stablecoins position if need be.
Notably, Paxos halted the minting of new BUSD stablecoins yesterday after the directive ordered by the New York Department of Financial Services (NYDFS) to halt its services. The company has facilitated the redemptions of about $2.8B in BUSD since halting new mints on February 21.
“We look forward to continuing that dialogue in private. Of course, if necessary, we will defend our position in litigation,” CEO Charles Cascarilla said in an email to employees.
The CEO further noted that the company will continue supporting BUSD through 2024 in a bid to ensure seamless redemption. Moreover, the company still has a $12,431,454,168 market capitalization in BUSD with a 24-hour trading volume of about $10,140,064,037.
“We remain fully focused on serving the end holders of BUSD and protecting them from undo harm. Paxos will continue to support BUSD through at least February 2024 and maintain the highest standards of security and soundness in the stablecoin market,” Cascarilla said.
Meanwhile, Paxos indicated that the relationship with Binance on the BUSD is no longer viable to ensure long-term prosperity for stablecoins. Moreover, Binance CEO Changpeng Zhao (CZ) has distanced his cryptocurrency exchange from the Paxos business.
“The market has evolved, and the Binance relationship no longer aligns with our current strategic priorities,” he said.
Paxos and BUSD Market Outlook
Founded back in 2011, Paxos has amassed more than $500 million in total funding from leading investors like OakHC/FT, Declaration Partners, Mithril Capital, and PayPal Ventures. Other than BUSD, Paxos has other products in the market, including itBit crypto exchange, USDP stablecoin, and PAXG tokenized gold.
Notably, the Pax Dollar (USDP) has a market capitalization of approximately $704,921,893 and a 24-hour traded volume of about $3,190,161. The company’s PAX Gold (PAXG), on the other hand, has a market capitalization of approximately $457,754,314 and a 24-hour trading volume of about $9,233,420.
The company, as with other crypto-focused firms, is navigating through the regulatory framework to get approvals to provide services in as many global markets as possible. Furthermore, the fall of one of the largest cryptocurrency exchanges, FTX, has awakened regulators’ attention to the digital currency industry.
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