Binance has announced that it will discontinue its support for BUSD, its own stablecoin, by 2024.
The NYDFS conducted an investigation into stablecoin issuer Paxos, the company responsible for issuing BUSD, which led to the ceasing of cooperation between Paxos and Binance.
Consequently, the capitalization of BUSD decreased, falling from over $10 billion in February to $4.35 billion in June. It has since dropped further to less than $3.1 billion at the time of writing.
Additionally, the CFTC and SEC filed lawsuits against Binance and its CEO, Changpeng Zhao, for related issues.
As a response, Zhao condemned USDT, another stablecoin, deeming it a “black box” with a “certain” level of risk. He also said that Binance is doing work on an algorithmic stablecoin.
