With the regulatory onslaught on BUSD issuer Paxos, the head of research at Matrixport argues that regulators are not specifically targeting all stablecoins. Although Markus Thielen speculated that Paxos’ control over the token may not have been strict enough, the problem does not seem to be with stablecoins.
Binance offers a service for pegged tokens in which Binance-Peg BUSD is issued on BNB Chain and other blockchains while BUSD is locked on Ethereum. NYDFS is concerned that the $4.8 billion in BUSD may not be adequately backed or may not be backed exactly one to one.
According to Paxos, BUSD tokens created by Paxos Trust are and always will be entirely segregated, stored in bankruptcy distant accounts, and backed 1:1 by US dollar-denominated reserves.Thielen cautioned the sector not to take the future of BUSD too seriously.
