Paxos: Process over $7.9 billion in BUSD redemptions within 32 days, and will provide support for at least another year

According to reports, Paxos disclosed on its official website that after announcing on February 13, 2023 that it would stop casting new BUSD tokens and terminate its relationship with Coin Security, the platform has processed over $7.9 billion in BUSD redemptions in the past 32 days, accounting for nearly 50% of the current BUSD, without causing any losses to customers or causing market chaos, and has managed all customer assets in accordance with the New York State Bank Law to avoid bankruptcy. Paxos stated that currently all BUSDs are hosted by NYDFS Trust and fully supported by USD cash and cash equivalents at a 1:1 ratio. Paxos will provide support for the circulation of BUSDs for at least one year, and all other Paxos products will not be affected by BUSD redemptions.

Interpretation of this information:

Paxos, a blockchain technology platform, announced on its official website that it has processed over $7.9 billion in BUSD redemptions in the past 32 days, accounting for almost 50% of the current BUSD. This comes after Paxos disclosed on February 13, 2023, that it would cease casting new BUSD tokens, and terminate its relationship with Coin Security. However, Paxos has ensured that the redemptions did not cause any losses to its customers or market chaos, and has managed all customer assets in accordance with the New York State Bank Law to avoid bankruptcy.

Paxos further stated that currently, all BUSDs are hosted by NYDFS Trust and backed by USD cash and cash equivalents at a 1:1 ratio. The platform assured customers that it would continue to support the circulation of BUSDs for at least one year, and all other Paxos products will not be affected by BUSD redemptions.

This announcement confirms Paxos’ commitment to transparency and customer protection in light of its decision to cease casting new BUSD tokens. The platform’s swift response to BUSD redemptions has prevented any negative impact on the market or its customers, thereby upholding its reputation as a trustworthy blockchain technology platform.

In conclusion, Paxos has processed over $7.9 billion in BUSD redemptions in a manner that did not lead to losses, chaos, or any negative effects on the market. The platform’s strong adherence to the New York State Bank Law has protected its customers, and its continued support for BUSD circulation further confirms its commitment to its customers’ satisfaction and confidence.