Paxos issues new statement on BUSD stablecoin

Paxos announced on its official Twitter account on December 28 that it is the sole issuer of BUSD. The token is controlled by the organization, and is regulated by the New York State Department of Financial Services (NYDFS).

Paxos talks about BUSD token

Paxos has revealed more information about BUSD to the public. According to tweet, built on BUSD Ethereum and pegged to the US dollar. In the event of liquidation, the reserve money is kept completely separate in a bank account.

Since Paxos follows specified and tested third party redemption procedures and an independent party verifies the reserves every month, BUSD meets the standards required in New York.

The oversight board closely monitors currencies by regularly auditing banks and following BSA/AML regulations. Paxos released its report detailing the specific US Treasuries held by Paxos to return the coins monthly to third-party auditors. BUSD is the most secure and strictly governed option among all stablecoins.

Like any other digital asset, the asset can also be locked in other chains by a third party. It is important to remember that Paxos does not issue tokens backed by any network other than Ethereum.

What is BUSD and how is it connected to PAXOS

Tied to BUSD U.S. Dollar With the help of Binance’s branding efforts, and has been approved by NYDFS. The body is known for being a strict regulator in the monetary services industry, so this is a big deal. However, to prevent bankruptcy, client funds are kept in a separate account from the rest of the company’s money.

neither paxos nor binance There is no legal claim to the reserves. Instead, they serve the interests of those who own BUSD. This means that the Company may not claim title to the principal of the BUSD Reserve, may not commingle it with other Company funds, may not use it for anything other than the Reserve’s stated purpose, and Must be able to identify and separate the reserve bar reliably.

In short, it needs isolation and protection. Paxos reserves set aside to save enough holder in bankruptcy instead of the company’s other creditors.

Even if Paxos goes out of business tomorrow, token holders will still be able to access securities held in USD and BUSD reserves as major custodians hold them in the financial markets. If this happens, the asset will be safe and sound as another organization will be designated to liquidate the reserves and pay them back to BUSD holders.

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