The supply of Binance stablecoin (BUSD) has decreased by $5 billion in 2 weeks. Since February 13, the market capitalization of the asset has decreased by 32%, from $16.1 billion to $10.97 billion, according to CoinMarketCap.
On February 13, it became known that the New York State Department of Financial Services (NYDFS) ordered the BUSD issuer, Paxos, to stop issuing new tokens. Paxos stopped working with Binance for BUSD and the stablecoin was discontinued on February 21st.
The release of tokens took place as follows: when a client deposited an amount in US dollars, Paxos issued the corresponding amount in BUSD. If the client deposits BUSD, he receives dollars in return, and the stablecoins are redeemed or, as they say in the crypto community, are burned. Paxos stablecoin buybacks will be supported until at least February 2024.