Paxos News

The approval followed a similar move by regulators in Singapore, where Paxos said its local entity would launch a U.S. dollar-backed stablecoin.

The USD-backed token will comply with Singapore’s upcoming stablecoin laws and be issued through a new local Paxos entity that’s received initial approval.

PayPal launched its U.S. dollar-backed stablecoin in August 2023.

Chun’s reservations about whether to return the funds to Paxos stems from him being “annoyed” that “the person claiming it (the funds) kept saying EST instead of EDT/UTC.”

The total assets held in PayPal USD custody “meet or exceed the token balance,” with total tokens outstanding amounting to $44.4 million as of Aug. 31, a Paxos report states.

Paxos has earlier said it would halt support of Binance’s stablecoin by February; now the exchange has said it will also stop support by that time.

The move provides PAX coin access to Mexico’s 3.1 million-plus cryptocurrency users.

The new exchange does not custody customer funds itself to avoid a conflict of interest — and a hot-button issue with the SEC.

After a dip of over $1 billion in the past 30 days, BUSD now sits fourth in market capitalization among stablecoins.

A mainstream report citing multiple insiders claimed that Binance mingled customer’s funds with corporate funds at Silvergate Bank.

Tether and Circle have been leading lobbying efforts among stablecoin issuers as they push for legislation and regulations for stablecoins.

“We need more transparency over the reserves of these stablecoins, which I think we’re going to see,” Clara Medalie said.

Paxos assured its customers that their funds would “remain safely” in their accounts but advised users to withdraw all balances at their earliest convenience.

The supply of USDT across cryptocurrency exchanges has dropped 28% in 2023, hinting at an overall decline in demand for stablecoins.

The crypto-friendly Signature Bank was a key partner for many crypto firms, some which have been voluntarily disclosing their exposure to the recently closed firm.