Latest news with #BinanceUSD
The Star
a day ago
- Business
- The Star
Exclusive-Paxos joins spate of crypto companies applying for US trust bank licenses
FILE PHOTO: Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market" and decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -Paxos Trust Company, the cryptocurrency firm behind PayPal's stablecoin, said it is applying to create a national trust bank in the U.S., joining a raft of digital asset companies looking to gain a larger foothold in the traditional financial system. If the charter is granted by the U.S. Office of the Comptroller of the Currency, it would allow Paxos to manage and hold assets on behalf of customers and settle payments faster. Unlike traditional banks, the license would not allow Paxos to take cash deposits or make loans. If approved, Paxos would convert its limited purpose trust charter with the New York Department of Financial Services to a federal charter under the OCC. The charter wouldn't change Paxos' business model, but would offer the "highest level of regulatory oversight... that carries more weight in the U.S. and globally," according to a source familiar with the matter. Paxos previously applied for a national trust bank charter in 2020, and the firm received preliminary conditional approval from the OCC in 2021. But its application stalled and eventually expired in 2023. Crypto platform Anchorage Digital is currently the only digital asset company with a national trust bank charter. Stablecoin firm Circle along with crypto firm Ripple also applied for national trust bank charters last month. Paxos offers businesses blockchain and stablecoin infrastructure and capabilities, and issues several of its own stablecoins. Paxos issues PayPal's stablecoin PYUSD, which has a market capitalization of more than $1 billion. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. Last month, U.S. President Donald Trump signed a law to create a regulatory regime for stablecoins, a milestone that experts said could pave the way for the digital assets to become an everyday way to make payments and move money. The law's passage was the culmination ofa long lobbying effort by the crypto industry, which donated more than $245 million in last year's elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data. Paxos had previously partnered with Binance, the world's largest cryptocurrency exchange, to market and distribute the Binance USD stablecoin. New York ordered Paxos in early 2023 to stop issuing Binance's stablecoin, and Paxos subsequently ended the partnership. Last week, Paxos reached a $48.5 million settlement to resolve New York charges that the company failed to police illegal activity related to Binance, after Binance's former chief executive pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement in 2023. (Reporting by Hannah Lang in New York; Editing by Chizu Nomiyama )
Mint
5 days ago
- Business
- Mint
Paxos Trust in $48.5 million New York settlement over Binance-related lapses
NEW YORK (Reuters) -Paxos Trust reached a $48.5 million settlement to resolve New York charges the virtual currency company failed to police illegal activity related to cryptocurrency exchange Binance, the state's financial services regulator said on Thursday. Adrienne Harris, New York's financial services superintendent, said Paxos will pay a $26.5 million civil fine and spend $22 million to upgrade its compliance program. Paxos previously partnered with Binance, the world's largest cryptocurrency exchange, to market and distribute the Binance USD stablecoin. New York's Department of Financial Services said Paxos lacked effective controls to monitor wrongdoing at Binance, failed to escalate red flags to senior management, and had systemic failures in its anti-money laundering program. The regulator said a review it ordered Paxos to conduct found that from July 2017 to November 2022, about $1.6 billion of transactions on Binance's platform involved illicit actors, including Ponzi schemers and people sanctioned in darknet marketplaces. Binance also processed transactions involving entities sanctioned by the U.S. Office of Foreign Assets Control, the review found. New York ordered Paxos in February 2023 to stop issuing Binance's stablecoin. Paxos subsequently ended its partnership with Binance. In a statement, Paxos said it was pleased to settle. It also said it has "fully remediated" the compliance issues, customer accounts were not affected, and consumers were not harmed. Binance was not a defendant in the New York case. It entered a guilty plea in November 2023 and accepted a $4.32 billion criminal penalty for violating federal anti-money laundering and sanctions laws. The U.S. Securities and Exchange Commission dismissed its own civil case against Binance in May, reflecting a change in approach toward cryptocurrencies during U.S. President Donald Trump's second White House term. (Reporting by Jonathan Stempel in New York; Editing by Kirsten Donovan)
Arabian Post
07-06-2025
- Business
- Arabian Post
MEXC Advances Stablecoin Growth Following Strategic USDe Acquisition
MEXC, a prominent digital asset exchange, has accelerated its stablecoin expansion strategy after acquiring $20 million worth of USDe tokens, marking a notable milestone as its stablecoin ecosystem surpasses a $100 million total value locked . This move signals a determined push by MEXC to strengthen its position in the increasingly competitive stablecoin market and further diversify its crypto offerings. The $20 million USDe acquisition represents a calculated effort to bolster liquidity and adoption of stablecoins pegged to the US dollar, which have become vital in reducing volatility within the cryptocurrency sector. Stablecoins like USDe offer users a more reliable medium of exchange and store of value compared to traditional cryptocurrencies, which can experience dramatic price swings. MEXC's increasing focus on stablecoins aligns with global trends where institutional and retail investors seek safer avenues for digital asset investment amid regulatory uncertainties and market fluctuations. Beyond the recent purchase of USDe, MEXC's stablecoin portfolio has seen sustained growth, pushing the platform's total stablecoin value locked to exceed $100 million. This figure reflects the combined assets users have committed within MEXC's stablecoin ecosystem, encompassing liquidity pools, staking, and yield farming products. The growing TVL not only underscores user confidence but also enhances the exchange's capacity to support high-volume trading and DeFi activities anchored by stablecoins. ADVERTISEMENT MEXC's engagement in the stablecoin space builds upon its earlier strategic $16 million investment in Ethena, a notable innovator specialising in stablecoin technology and ecosystem development. Ethena's platform focuses on creating programmable, algorithmic stablecoins that aim to maintain price stability through decentralised governance and dynamic supply adjustments. By backing Ethena, MEXC has positioned itself at the forefront of stablecoin innovation, tapping into emerging technologies that could redefine how digital currencies achieve and sustain their peg. The decision to invest heavily in USDe and Ethena also comes amid rising competition among exchanges and financial platforms seeking to capture market share in stablecoin issuance and trading. Major players like Tether , USD Coin , and Binance USD dominate market capitalization, but newer tokens like USDe have gained traction through enhanced transparency, regulatory compliance, and blockchain interoperability. MEXC's adoption of USDe highlights its intent to diversify beyond the dominant incumbents, offering users alternatives that may align better with evolving regulatory frameworks. Industry experts note that the integration of stablecoins into broader financial systems remains a critical driver for crypto adoption. Stablecoins facilitate cross-border payments, remittances, and decentralised finance applications with reduced friction and costs compared to fiat-based mechanisms. MEXC's strategy of expanding its stablecoin offerings enhances its utility as a hub for such financial activities, making it attractive to a wider range of traders and developers. Regulatory clarity surrounding stablecoins has varied globally, with some jurisdictions imposing stringent requirements while others promote innovation-friendly policies. MEXC, headquartered in Seychelles with a growing international presence, has adapted to this shifting landscape by aligning its stablecoin partnerships with platforms like Ethena that emphasise compliance and governance transparency. This approach aims to pre-empt potential regulatory hurdles and establish MEXC as a responsible player in the digital currency ecosystem. The growth in MEXC's TVL also corresponds with increased user engagement in decentralised finance products facilitated by stablecoins. Yield farming and staking opportunities offered on the platform encourage users to lock their assets in exchange for rewards, helping to boost liquidity and network activity. These products often depend on stablecoins to mitigate risk, offering participants a balance between yield generation and capital preservation. ADVERTISEMENT Market analysts observe that the stablecoin sector is poised for further expansion as demand for digital dollar substitutes rises. Factors such as increasing institutional interest, the rise of central bank digital currencies , and the ongoing integration of blockchain technology into mainstream finance all contribute to stablecoins becoming indispensable in the crypto landscape. MEXC's proactive steps to expand its stablecoin infrastructure may provide a competitive advantage as these trends accelerate. The $100 million TVL milestone not only demonstrates MEXC's capability to attract substantial user funds but also reflects confidence in the exchange's technical infrastructure and security protocols. Ensuring safe custody and seamless transactions is crucial for stablecoin platforms, given the heightened regulatory scrutiny and user concerns over fraud and hacking incidents in the sector. MEXC's roadmap indicates continued efforts to broaden its stablecoin offerings, with potential plans to incorporate additional tokens and enhance cross-chain compatibility. This would enable users to transact stablecoins across multiple blockchain networks, facilitating greater interoperability and expanding MEXC's reach within the decentralised finance space. The exchange also plans to deepen its collaboration with DeFi projects and developers, positioning stablecoins as a foundational component for innovative financial products. This aligns with broader industry movements where stablecoins serve as the backbone for lending protocols, decentralised exchanges, and payment solutions.
