Latest BUSD (BUSD) News Update

Deep Dive

1. @0xOnlyCalls: Regulatory erosion triggers BUSD decline 📉 bearish

“Binance's BUSD market share falls to 5% from 25% at its peak. Regulatory pressures create a shift towards decentralized stablecoins like $USDC and $DAI.”
– @0xOnlyCalls (12.3K followers · 84K impressions · 2025-07-02 12:10 UTC)
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What this means: Bearish for BUSD as traders migrate to alternatives perceived as less centralized. The 80% market share drop since 2023 highlights fading institutional confidence post-NYDFS actions against issuer Paxos.

2. @DU09BTC: Paxos rebounds post-BUSD with Hyperliquid bid 🚀 neutral

“If @Paxos issues $USDH for @HyperliquidX, it’s a win with 95% buybacks! Paxos used to manage BUSD before regulators killed it.”
– @DU09BTC (8.9K followers · 23K impressions · 2025-09-07 04:58 UTC)
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What this means: Neutral for BUSD – this reflects Paxos’ strategic shift after its $48.5M NYDFS settlement in August 2025 rather than direct BUSD developments. Shows stablecoin issuers adapting post-regulatory blows.

3. @henvaibta: Political winds batter centralized stables 🌪️ bearish

“BUSD collapsed despite strong positioning... Trump family entering stablecoin arena threatens all centralized players.” (Translated from Vietnamese)
– @henvaibta (6.2K followers · 15K impressions · 2025-09-05 02:44 UTC)
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What this means: Bearish long-term as political scrutiny intensifies. BUSD’s 90-day price change of +1.14% (CMC data) masks structural risks from potential US regulatory moves against centralized stables.

Conclusion

The consensus on BUSD is bearish, with its role shrinking to CEX trading pairs and legacy systems despite maintaining its peg. Regulatory aftershocks from Paxos’ 2025 settlement and the rise of alternatives dominate discussions. Watch BUSD’s circulating supply (currently $55M, down 99.8% from 2023’s $23B peak) for signs of final capitulation or unexpected utility resurgence.

Deep Dive

1. Paxos Seeks Federal Banking Charter (12 August 2025)

Overview:
Paxos, BUSD’s issuer, applied to convert its New York trust charter into a federal one under the Office of the Comptroller of the Currency (OCC). If approved, this would grant nationwide operational access, bypassing state-by-state licensing. The move aligns with the GENIUS Act (signed July 2024), which legalized stablecoins and established federal oversight frameworks.

What this means:
This is bullish for BUSD’s long-term credibility, as federal oversight could enhance trust for institutional adoption. However, approval isn’t guaranteed – banking groups oppose crypto firms gaining trust status, citing financial stability risks. (Yahoo Finance)

2. $48.5M NYDFS Settlement Finalized (7 August 2025)

Overview:
Paxos settled with New York regulators over anti-money laundering (AML) deficiencies linked to its BUSD partnership with Binance. The penalty includes a $26.5M fine and $22M for compliance upgrades. Issues centered on inadequate due diligence on Binance and failure to monitor $1.6B in suspicious transactions (2019–2023).

What this means:
The settlement resolves a key regulatory overhang but underscores lingering trust gaps. While Paxos claims issues were “fully remediated,” the fine reinforces scrutiny on stablecoin issuers’ partner vetting processes. (CoinDesk)

3. Market Share Drops to 5% (2 July 2025)

Overview:
BUSD’s dominance among stablecoins fell from 25% at its 2023 peak to 5%, per on-chain data. Traders shifted to alternatives like USDC and DAI amid regulatory uncertainty and Binance’s pivot to FDUSD.

What this means:
This reflects bearish sentiment toward centralized stablecoins post-crackdowns. With BUSD’s circulating supply now at $55M (down from $23B in 2023), its utility hinges on Paxos’ ability to rebuild institutional demand via federal charters. (@0xOnlyCalls)

Conclusion

BUSD faces a pivotal phase: Federal charter progress could revive institutional interest, but eroded market share and compliance scars pose headwinds. Will Paxos’ regulatory pivot offset the exodus to decentralized alternatives?

Deep Dive

1. Final Redemption Deadline (February 2024)

Overview: Binance ended support for BUSD in February 2024, directing users to convert holdings to alternatives like FDUSD. While the deadline has passed, BUSD remains redeemable at a 1:1 USD ratio through Paxos until August 2027.

What this means: Neutral for BUSD. The stablecoin’s utility is winding down, but redemptions prevent depegging risks. Traders must monitor exchange delistings (e.g., Coinbase’s 2023 suspension) for liquidity shifts.

2. Paxos Settlement Completion (August 2025)

Overview: Paxos finalized a $48.5M settlement with NYDFS in August 2025 over BUSD-related compliance failures, including inadequate AML/KYC controls. This closes a multi-year regulatory saga tied to Binance.

What this means: Bearish for BUSD. The settlement formalizes Paxos’ exit from BUSD operations, accelerating its decline. Market share has already plummeted from 25% (2023 peak) to 5% (@0xOnlyCalls), with traders favoring USDC or DAI.

3. Ongoing Redemptions Until 2027

Overview: Paxos continues processing BUSD redemptions at a 1:1 USD ratio until August 2027, per its agreement with regulators. Binance has migrated users to FDUSD, offering zero-fee conversions.

What this means: Neutral for BUSD. Redemptions ensure stability for remaining holders but signal no revival plans. Declining liquidity (24h volume: $2.23M) and a $55M market cap reflect diminished relevance.

Conclusion

BUSD’s roadmap is now a managed sunset: redemptions persist until 2027, but regulatory hurdles and Binance’s shift to FDUSD have cemented its phase-out. How will shrinking liquidity impact long-term holders still retaining BUSD?

Deep Dive

1. Regulatory-Driven Phaseout

Binance announced in November 2023 that it would cease BUSD support by December 2023, citing regulatory pressures. All BUSD balances were automatically converted to FDUSD at a 1:1 ratio by January 2024 (Binance). This decision followed Paxos halting new BUSD minting in February 2023 after a NYDFS order.

2. Technical Implications

Post-2023, BUSD’s codebase saw no visible updates, as development shifted to FDUSD. Binance-Peg BUSD collateral was converted to FDUSD, and withdrawals/deposits were disabled. The stablecoin’s on-chain activity dwindled, with a circulating supply of ~57.8M as of June 2025, down from 16B in 2023.

Conclusion

BUSD’s codebase has been inactive since its phaseout began in 2023, reflecting Binance’s strategic pivot to FDUSD. How might FDUSD’s adoption trajectory differ from BUSD’s in a more regulated stablecoin landscape?