Binance USD

For a time BUSD ranked among the three largest stablecoins in the world, a Paxos-issued dollar that Binance promoted heavily as its house currency. Unlike many rivals it held its peg without drama, backed by cash and short-term US government reserves under a New York limited-purpose trust charter, one of the more tightly supervised setups in the business. Its trajectory turned in February 2023, when the NYDFS directed Paxos to stop minting new BUSD over concerns about its Binance oversight, capping the supply and setting it on a long decline. Redemption at par ran through Paxos itself, gated by customer onboarding rather than open to every holder, so the coin functioned largely as a regulated institutional dollar. Its story stands as a case study in how regulation, not a market failure or depeg, can quietly retire an otherwise sound stablecoin.