![]() View metric: /AyUxy5qt6o- glassnode alerts March 2, 2023 Previous 5-month low of 94.964 was observed on 23 October 2022 □ $BUSD Number of Active Addresses (7d MA) just reached a 5-month low of 94.857 Put another way, based on the seven-day moving average on active BUSD addresses, activity on Binance USD stablecoin has decreased by 62% since October. When compared to the end of 2022, there were typically more than 250 active cryptocurrency addresses every hour, representing a material change in activity. It was created by Binance, one of the world’s largest cryptocurrency exchanges, in partnership with Paxos Trust Company, a regulated financial institution.īased on its seven-day moving average, there are currently ninety-four (94) active BUSD addresses per hour. This is according to recent data provided by Glassnode on March 2, 2022.īUSD is a stablecoin, which is a type of cryptocurrency that is designed to maintain a stable value in relation to a particular asset or currency, usually the US dollar. Based on widely-followed moving average metrics, the number of active BUSD addresses decreased to levels last seen on October 23, 2022, five months prior. a circumstance that can be viewed as predictable given the recent negative news cycle. Paxos doesn’t keep a massive proportion of backing assets in bank accounts, it spreads them between several institutions, and it has private insurance for a substantial proportion.Binance USD (BUSD) stablecoin is steadily losing activity over time. If there were a run on one of those institutions, that might unnecessarily create concerns for Paxos stablecoins, even if the exposure was negligible. One thing that Paxos includes in its collateral transparency report is the list of banks that hold deposits. Some might argue transparency is always good. Its latest published report is for the end of March, and its next one likely won’t be released before mid-August, despite the crypto crash in between.Įven though Paxos doesn’t need to change anything to comply with NYDFS requirements, with this detailed disclosures disclosed today, it’s taken it a step further. In contrast, the largest stablecoin, Tether only reports quarterly, usually six weeks after quarter-end. Again, in contrast to some competitors, Paxos has been ahead of the curve, publishing attestations shortly after month-end. And even Tether has gradually reduced the proportion from half of the assets to a quarter and plans to reduce them further.Īnother NYDFS requirement is more timely attestations, requesting publication within 30 days. Last year, after many questions about the nature of the commercial paper that backs the Tether stablecoin, Circle announced that its USDC stablecoin’s assets would no longer include commercial paper. ![]() Paxos has always been more conservative than other stablecoin issuers, investing in cash and Treasuries. This includes requiring the backing assets to be invested only in bank accounts and short-term Treasuries. Shortly after the collapse of the Terra algorithmic stablecoin last month, the New York State Department of Financial Services (NYDFS), which regulates Paxos Trust issued guidelines for stablecoin issuers. “These enhanced disclosures underscore this point.” “The only way we can build trust in stablecoins and grow the adoption of this important technology globally is by continuing to embrace robust oversight and providing unprecedented transparency,” said Charles Cascarilla, Paxos CEO and Co-Founder. It breaks down the assets by specific Treasury securities in which it has invested and shows the average maturity. Today blockchain firm Paxos issued far more detailed disclosures about the assets that back both the Pax dollar (USDP) stablecoin and Binance USD (BUSD), the third-largest stablecoin for which Paxos is the issuer.
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