Changpeng Zhao says Binance will continue to support BUSD for the foreseeable future, but the company anticipates that users will migrate to other stablecoins over time.
Paxos has announced that it will stop issuing Binance USD stablecoins.
The stablecoin issuer will continue to oversee redemption of Binance-branded BUSD following the order by the New York Department of Financial Services (NYDFS).
All BUSD tokens remain backed 1:1 with U.S. dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts, Paxos said.
Binance CEO Changpeng "CZ" Zhao tweeted out a statement that "BUSD is wholly owned and managed by Paxos ... and funds are #SAFU!"
Zhao added that "Binance will continue to support BUSD for the foreseeable future" — but added:
"We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly — eg, move away from using BUSD as the main pair for trading, etc."
CoinMarketCap is owned by Binance.
The NYDFS said it acted "as a result of several unresolved issues related to Paxos' oversight of its relationship with Binance in regard to Paxos-issued BUSD."
Reports said the NYDFS acted after complaints about the reserves from rival stablecoin issuer Circle, whose USDC is the No. 2 stablecoin behind Tether's USDT by market capitalization. BUSD is No. 3.
