Before Paxos published a press release at 6 a.m. Eastern time Monday, the stablecoin BUSD had approximately 16.16 billion tokens in circulation. In the past eight hours, nearly $290 million has been redeemed, bringing the number of BUSD in circulation to 15.87 billion.

Stablecoin BUSD Sees Increased Redemption Activity During Regulatory Scrutiny

The stablecoin BUSD is experiencing increased activity on Monday as the third largest stablecoin by market capitalization has seen 286,720,127 BUSD redeemed in approximately eight hours. The increased activity began the previous day, when reports claimed the U.S. Securities and Exchange Commission (SEC) had sent Paxos a Wells Notice regarding potential charges. Earlier reports also claimed the New York Department of Financial Services (NYDFS) was investigating Paxos.

The following day, Paxos published a press release stating that it was cooperating with the New York Department of Financial Services (NYDFS) and would cease minting BUSD. The company added that “existing BUSD tokens will remain fully-backed and redeemable through Paxos Trust Company three ough at least February 2024.” Alongside the Paxos press release, the New York regulator issued a Consumer Notice regarding the Paxos-issued binance usd (BUSD) stablecoin.

Redemptions have begun, with nearly $290 million redeemed on Monday, following billions redeemed in recent months. Three months ago, BUSD’s market capitalization was approximately $23.24 billion and more than 30% of its supply has been redeemed in the past 90 days. Redemptions on Monday caused some slight price fluctuations and BUSD dropped to a low of $0.992245 on Feb. 13.

Much of BUSD’s trading today is paired with Tether (USDT), followed by the Turkish lira, Makerdao’s DAI and the U.S. dollar, according to statistics from on Monday. Before the Paxos press release on Monday morning, BUSD’s trade volume was around $15 billion, but it has since increased 18% higher to $17.60 billion by 3:15 p.m. Eastern time. In addition to the large amount of redemptions, Binance CEO Changpeng Zhao (CZ) cautions of significant repercussions on the crypto sector if BUSD is deemed a security.

Tags in this story
8 hours, Activity, Altcoins, Binance Paxos, BUSD, BUSD redemptions, Charges, Circulation,, DAI, fluctuations, fully-backed, halting, Investigation, makerdao, Market Capitalization, minting, Monday, New York Department of Financial Services, NYDFS, Paxos, Paxos Trust Company, press release, Price Fluctuations, Redeemable, redemptions, SEC, Stablecoin, stablecoin news, Stablecoins, Statistics, Tether, trade volume, trading, Turkish Lira, U.S. dollar, U.S.Securities and Exchange Commission, USDT, wells notice

What impact will the recent redemptions and regulatory scrutiny have on the future of BUSD and other stablecoins in the market? Share your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Articles You May Like

Oklahoma court nixes Norman election on TIF districts
Hobbies are not supposed to be productive endeavours
Donald Trump Jr says GOP no longer has to ‘bend the knee’ to Rupert Murdoch
Goldman challenges Fed’s demand it hold more capital after stress test
What happened to Russia’s seized superyachts?