Paxos Burns $700 Million Binance USD | coindesk JAPAN | Coindesk Japan

Paxos, which handles the issuance of stablecoin Binance USD (BUSD), has issued more than 700 million dollars (91 billion yen, 1 dollar = 130 yen conversion) of Binance USD since February 13 by the time of this writing. Burning (incineration).

Paxos has sent $703 million worth of Binance USD to its burn address and removed it from circulation in the last 27 hours since the morning of March 13, according to data from blockchain data firm Nansen.

According to Etherscan, Paxos sent $144.5 million worth of Binance USD at 13:47 UTC on the 13th, less than two hours after the announcement of the suspension of new issuance. It then sent eight more transmissions worth about $559 million.

Binance USD is a dollar-backed stablecoin backed by short-term government bonds and cash-like assets that can be exchanged 1-for-1 with the US dollar at any time by holders. U.S. fintech firm Paxos issues stablecoins in compliance with New York State Department of Financial Services (NYDFS) regulations.

The burn is a sign that investors are rapidly withdrawing from Binance USD. The scale of $700 million in just over a day is equivalent to about 6% of the circulation. “Binance USD will continue to decline over time,” Binance CEO Changpong Zhao said yesterday.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Nansen
｜Original: Stablecoin Issuer Paxos Burns $700M Binance USD in 27 Hours Amid Regulatory Pressure