Paxos Trust Company, a financial institution & tech firm based in New York specializing in blockchain, has notified its staff members that it is in productive dialogue with the United States SEC on the potential restarting of BUSD.
Paxos Trust Company is a company that specializes in the blockchain. Conversely, Paxos has indicated it is willing to protect its BUSD stablecoins stance if the situation calls for it.
Importantly, Paxos stopped the issuance of new BUSD stablecoins Tuesday after the New York Department of Financial Services (NYDFS) issued a directive ordering the company to halt its operations.
Since the 21st of February, when it stopped producing new bitcoins, the business has helped redeem around $2.8 billion worth of BUSD.
"We are eager to continue that conversation behind closed doors. Should it become necessary, we will vigorously defend our stance in court," CEO Charles Cascarilla wrote (1) in an email to workers.
Additionally, the CEO mentioned that the company will keep funding BUSD through 2024 to guarantee that redeeming will go smoothly.
In addition, the company currently has a market capitalization of $12,436,761,399 in BUSD and a 24-hour trading volume of around $8,723,347,851.
"We continue to keep our complete attention directed toward servicing the end users of BUSD and shielding them from unnecessary harm. Cascarilla states, "Paxos will continue to support BUSD until at least February 2024 and will keep the highest levels of security and integrity in the stablecoin market."
In the meantime, Paxos has stated that the collaboration with Binance on the BUSD is no longer sustainable to ensure the continued success of stablecoins over the long run.
In addition, the Chief Executive Officer of Binance, Changpeng Zhao, also known as CZ, has disassociated his cryptocurrency exchange from the Paxos firm.
Forecast for the Paxos and BUSD Markets
Paxos began operations in 2011, and since then, the company has raised more than $500 million in total capital from influential investors such as OakHC/FT, Declaration Partners, Mithril Capital, and PayPal Ventures.
Paxos has other goods available on the market besides BUSD, including the itBit crypto exchange, the USDP stablecoin, and the PAXG tokenized gold.
Noteworthy is the fact that the Pax Dollar (USDP) has a market cap of roughly 704,921,893 and a 24-hour traded volume of about 3,190,161 coins and tokens.
On the other hand, the company's PAX Gold (PAXG) has a market cap of roughly $457,754,314 and a trading volume of approximately $9,233,420 each twenty-four-hour period.
The company, along with other businesses focusing on cryptocurrencies, is negotiating the regulatory system to obtain approvals to provide services in as many worldwide regions as is practicable.
Also, the failure of FTX, one of the major cryptocurrency exchanges, has brought regulators' attention to the digital currencies field.