Paxos Burns $700 Mln Worth of BUSD Amid Regulatory Pressure

Paxos has burned over $700 mln worth of BUSD tokens since the start of the week. This came shortly after Paxos announced it would stop issuing BUSD coins amid growing pressure from regulators. However, the stablecoin company promises that its product will always be backed by 1:1 US dollars, and it will continue to process customer withdrawal requests until February 2024.

A crypto wallet owned by Paxos Treasury transferred $703 mln worth of BUSD to a burn address, according to Nansen. On Monday, Paxos Treasury sent its first BUSD transaction worth $144.5 mln, according to Etherescan data. Eight more transactions followed over the next 27 hours, totaling about $559 mln.

Redemption of the stablecoin BUSD in the amount of $700 mln is 6% of the total number of coins in circulation. Against the background of all the recent events, the head of Binance, Changpeng Zhao, said that the market capitalization of BUSD "will only decrease over time."

Image: Paxos