Feb 10, 2023
NYDFS Investigates Paxos Trust Company
The New York Department of Financial Services (NYDFS) is reportedly investigating Paxos Trust Company, the issuer of Binance USD (BUSD) and Paxos Dollar (USDP) stablecoins. According to a person familiar with the matter, the exact motive behind the probe is currently unclear.
Paxos, founded in 2012, is a New York-based stablecoin issuer. The firm is the third largest stablecoin issuer in terms of market cap, with BUSD currently at over $16 billion and USDP at $875 billion. They are also the creators of PAX Gold (PAXG), a gold-backed-Ethereum token.
In 2015, Paxos was issued a “BitLicense” by the NYDFS, which legally permits companies to conduct digital currency-related activities in the state of New York. The firm has also released a statement on their website, affirming that their BUSD and USDP token reserves are backed wholly in U.S. Dollars and U.S.Treasuries.
This is not the first investigation initiated by the NYDFS in the past year. In January 2021, Coinbase Global U.S. reached a settlement of $100 million with the regulator after they failed to look over about 100,000 suspicious transactions from customers who opened accounts without sufficient background checks.
Following the collapse of the Terra LUNA ecosystem and its failed algorithmic stablecoin TerraClassicUSD (USTC) in May 2022, the NYDFS published a stablecoin guidance report to ensure stablecoin issuers fully back their assets and attest regularly.
The NYDFS spokesperson declined to comment on the ongoing investigation but noted that the department is broadly working to protect consumers from risks associated with investing in the cryptocurrency market.
Cointelegraph reached out to Paxos and Binance for comment but did not receive an immediate response.
The web3 space has seen a surge in interest over the past year, with many investors and companies turning to NFTs as a way to promote their businesses and increase their reach. NFTs are digital assets that are stored on the blockchain and can be used to represent anything from artwork and collectibles to in-game items and virtual real estate.
NFTs have become increasingly popular as a way to promote businesses, and many companies are now turning to NFT marketing agencies to help them sell their NFTs. These agencies specialize in running successful NFT campaigns on social media platforms such as Twitter, where they can target potential buyers and create hype around the NFT.
NFT marketing agencies can also help companies create and launch their own NFTs, providing valuable advice on how to price and market the NFTs to maximize their success. They can also provide valuable insights into the NFT market, helping companies to identify trends and capitalize on them.
The web3 space is an ever-evolving and increasingly popular space, and with the help of NFT marketing agencies, companies can reach a wider audience and increase their visibility. Whether it’s through promoting their own NFTs or helping other companies to do so, these agencies can help companies to capitalize on the potential of the web3 space.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
