Binance Transfers Close to $300m in BUSD to Paxos

Binance has transferred about 300 million BUSD ($299,994,233) to the Paxos treasury, according to Whale Alerts, a blockchain analytics Twitter account. This transaction took place today, January 24 at 14:16 UTC.

BUSD transfer and burn on Paxos Treasury.

In a Twitter update, blockchain transactions tracker @whale_alert Binance migration highlighted 300 BUSD to the Paxos Treasury. The transaction took place earlier today and shortly after a Burn update 30 minutes after transfer. Paxos burned about 324,663,193 BUSD coins at about 14:44 UTC.

News of the transfer and burning could alert investors, as Bloomberg reported just a fortnight ago about fears of a BUSD dollar shortage.

Paxos, a blockchain technology firm, is working with Binance to ensure this. BUSD is fully supported..

However, as for BUSD, the firm promised to work on a stablecoin version that is only on the Ethereum blockchain. Paxos kept himself aloof from the problems of others.ETH- Based on BUSD coins.

“Binance-Peg BUSD is strictly a Binance product; it is not issued by Paxos or regulated by the New York State Department of Financial Services.

Paxos

A week ago, Paxos Treasury transferred about 88.9 million BUSD ($88,886,710) to Binance. Both can work around solving problems that solidify BUSD 1:1 support. All transactions, including transfer and burning, took place on Ethereum.

Binance admitted that BUSD was sponsored for some time on the Binance chain.

The firm acknowledged that solving the peg problem was not “flawless”. However, the crypto exchange has yet to confirm when it discovered that the stablecoin was undercollateralized. Since the news broke, investors began a massive withdrawal from the exchange.

Paxos is keen to maintain the USDP peg.

Paxos is not only trying to save BUSD’s reputation; The firm has recently taken some steps to increase its digital reserves and maintain the USDP dollar peg. The startup announced its plan to pay DeFi company MakerDAO to increase its Paxos USD (USDP) holdings by $1.5B.

MakerDAO currently has around $450 million USDP, and Paxos urged the former to maximize the reserves. The firm asked MakerDAO to use the peg module stability reserve system to stabilize its price-stable coin holdings. High above the peg.

Paxos proposed paying a daily fee of 45% of the effective federal funds rate, which was shared by MakerDAO last Friday.

gave Suggestion It also stated that MakerDAO will earn approximately $29M annually from USDP’s PSM collateral reserve. It also highlighted how the fee would reflect the Fed’s interest rate changes.

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