Binance-Peg BUSD
BUSD
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
Binance-Peg BUSD is a deprecated, wrapped stablecoin currently in a formal terminal wind-down following regulatory actions in February 2023, notably the NYDFS order directing Paxos to cease minting new BUSD. Binance subsequently urged users to convert their holdings by February 2024. Consequently, active development and community support sections lacked sufficient data (-1.0) and were excluded from the weighted score calculation. The token's market capitalization has contracted by approximately 97% from its peak, utility and demand have effectively collapsed, and backing mechanisms on wrapped chains have shifted from Paxos-held reserves to locked FDUSD tokens. While the asset did not experience a direct smart contract exploit or protocol insolvency, the regulatory shutdown and complete cessation of development render the token defunct.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Binance-Peg BUSD (BUSD)
Binance-Peg BUSD (BUSD) is a deprecated wrapped stablecoin issued by Binance across non-Ethereum blockchains, including BNB Smart Chain, Avalanche, Polygon, and Optimism. Historically, each wrapped token was designed to track the value of native, New York Department of Financial Services (NYDFS)-regulated BUSD issued by Paxos via a lock-and-mint mechanism, where Binance custodied native BUSD in reserve on Ethereum to support issuance on secondary networks.
The token entered a terminal wind-down following significant regulatory actions in February 2023, when the NYDFS ordered Paxos to cease minting new BUSD. In the same month, the U.S. Securities and Exchange Commission (SEC) issued a Wells notice alleging BUSD was an unregistered security (which was reportedly dropped in July 2024), alongside a broader U.S. Department of Justice (DOJ) investigation into Binance. In response to these regulatory enforcements, Binance urged users to convert their Binance-Peg BUSD holdings prior to February 2024, resulting in trading delistings and the cessation of official support and active development.
Following these events, the asset's market capitalization contracted by approximately 97% from its $10 billion peak to roughly 280 million tokens. The reserve backing structure subsequently shifted from Paxos-administered reserves to locked FDUSD tokens, introducing high centralization and counterparty risk. Historical investigations, including Forbes reporting, also identified collateral deficiencies exceeding $1 billion on three separate occasions prior to the token's phase-out. Binance-Peg BUSD currently functions strictly as a defunct legacy asset characterized by trapped balances, residual exit volume, and no forward development or active governance.