Blockchain and tokenization infrastructure platform Paxos announced it will end its relationship with Binance for the branded stablecoin BUSD.

Effective February 21, Paxos will cease issuance of new BUSD tokens as directed by and working in close coordination with the New York Department of Financial Services (NYDFS). Paxos Trust will continue to manage BUSD dollar reserves.

The company reiterates that all BUSD tokens issued by Paxos Trust have been backed 1:1 with US dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts.

BUSD will remain fully supported by Paxos and redeemable to onboarded customers through at least February 2024. New and existing Paxos customers will be able to redeem their funds in US dollars or convert their BUSD tokens to Pax Dollar (USDP), a regulated US dollar-backed stablecoin also issued by Paxos Trust.

Paxos comments:

“Paxos continues to maintain strong regulatory capital to protect customers, as well as a strong corporate balance sheet to support our long-term business goals. This action does not impact our ability to continue serving new or existing customers, our continued dedication to grow our staff or fund our business objectives. Paxos remains committed to becoming the global leader in the blockchain tokenization infrastructure relied upon by global enterprises as they transition towards faster, safer, fairer and more efficient financial systems”.