The firm behind Binance’s stablecoin has been ordered to stop issuing the token
The New York Department of Financial Services told Paxos to stop minting Binance USD, citing unresolved issues.
The digital token won’t have any new coins minted from next week.
The company will also continue to support and redeem tokens until February next year.
It is a setback for Binance’s effort to gain market share in the stablecoin space, as it doesn’t appeal as much to larger investors.
Stablecoins – digital tokens typically backed by traditional assets that are designed to hold a steady value – have emerged as one of the key cogs in the crypto economy.
They are used for trading between volatile tokens like bitcoin and, in some emerging economies, as a means to protect savings against inflation.
