• Paxos announced on Dec. 28th that it is the sole issuer of BUSD, a US dollar-backed stablecoin regulated by the New York State Department of Financial Services (NYDFS) on Ethereum.
• BUSD is built on Ethereum and pegged to the US dollar, with reserve monies maintained in a bank account wholly segregated in the event of liquidation.
• Paxos follows specified and tested third redemption processes, and an independent party attests to the reserves every month to ensure that BUSD meets the necessary standards in New York.
The Paxos organization recently announced on its official Twitter account that it is now the sole issuer of BUSD, a US dollar-backed stablecoin regulated by the New York State Department of Financial Services (NYDFS), on Ethereum. BUSD is built on the Ethereum blockchain and is tied to the US Dollar through Binance’s branding efforts. It is designed to be a secure and strictly-governed option among other existing stablecoins.
The reserve monies required for BUSD are maintained in a bank account that is wholly segregated in the event of liquidation. Paxos follows specified and tested third redemption processes, and an independent party attests to the reserves every month in order to meet the necessary standards in New York. The Paxos team also releases reports detailing the specific US Treasuries held by Paxos to back the coin to third-party auditors on a monthly basis.
The inspection board closely monitors the currencies by regularly auditing the banks and adhering to BSA/AML regulations. Additionally, BUSD tokens can be locked onto other chains by a third party, just like any other digital asset. It is important to note that Paxos only issues tokens backed by Ethereum, rather than any other network.
Overall, BUSD is a secure and strictly-governed stablecoin option, backed by the US Dollar, and regulated by the New York State Department of Financial Services. Paxos follows specified and tested third redemption processes, and provides regular reports to third-party auditors to ensure that all standards are met. Lastly, BUSD tokens can be locked onto other chains by a third party, allowing for a more versatile digital asset.