Binance crypto exchange has announced that it will continue to support the Binance USD (BUSD) stablecoin, although it is ready to explore other options in the future.
The recent order by the New York Department of Financial Services for Paxos, the issuer behind BUSD, to stop issuing the stablecoin has prompted Binance CEO Changpeng Zhao (also known as CZ) to address the issue.
Despite the recent enforcement action, Binance will continue to support BUSD for the “foreseeable future.”
CZ stated that Binance will be monitoring the situation and making necessary product adjustments, such as potentially moving away from using BUSD as the main pair for trading.
The exchange is also considering exploring other stablecoin issuers and non-USD-based stablecoins.
As the BUSD stablecoin is wholly owned and managed by Paxos, its market cap may decrease over time as a result of the NYDFS enforcement action.
However, Paxos will continue to service the product, manage redemptions, and provide additional information as required.
Binance has been actively promoting the use of BUSD on its platform in recent months. The exchange offers no-fee trading on BUSD trading pairs, incentivizing traders to trade with the stablecoin.
Binance’s decision to convert its users’ holdings from USDC, USDP, and TUSD into BUSD has also contributed to its rise in popularity.
