Binance USD stablecoin depegs as traders flock to rival stablecoin Tether

BUSD, Binance’s stablecoin, has turned volatile and has lost its dollar peg as regulatory action against its issuer Paxos Trust Co mounts.

BUSD was designed to maintain a 1:1 value with the U.S. dollar but slipped on Monday into a discount of 0.9950 against its rival tether (USDT) on Binance.

Tether is the world’s largest dollar-pegged stablecoin by market value.

Earlier today, the New York Department of Financial Services ordered Paxos Trust Co, which issues and lists BUSD, to stop minting more of its tokens.

Paxos has ended its relationship with Binance and has announced that it would cease the issuance of new BUSD tokens from Feb. 21.

The decline in BUSD/USDT pair on Binance suggests some traders are moving money into tether.

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