684 million BUSD burned for redemptions amid US regulatory scrutiny
Quick Take
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After Paxos said it would cease issuing BUSD but continue honoring redemptions, at least 684 million BUSD was burned in exchange for U.S. dollar redemptions, on-chain data show.
Just over a day after it categorically denied regulator claims Binance USD (BUSD) is a security, Paxos has burned some 684 million of the stablecoin for U.S. dollar redemptions, on-chain data show.
Formerly an issuer of BUSD, Paxos ceased distributing the stablecoin after the company received a Wells notice from the Securities and Exchange Commission.
Dollar parity redemptions for BUSD will be supported through at least February 2024, Paxos said.
To facilitate redemptions, Paxos sends BUSD to a burner address, destroying the tokens, which initiates a smart contract-driven process that refunds U.S. dollars to users from the reserve underpinning the stablecoin.
Transaction data from Arkham
An initial Paxos redemption to the tune of roughly $144 million in tokens a day ago was followed by additional tens of millions in redemptions, data from Arkham show.
Amid the redemptions the total supply of BUSD dipped below $16 billion to $15.81 billion.
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