BUSD Overview and Redemptions

Paxos no longer mints new BUSD. Effective February 21, 2023, Paxos ceased issuance of new BUSD tokens as directed by and in coordination with the New York Department of Financial Services (NYDFS). Existing Paxos-issued BUSD remains fully backed 1:1 by U.S. dollar-denominated reserves, fully segregated and held in bankruptcy-remote accounts.

Paxos supports redemption of native ERC-20 BUSD for USD by eligible, onboarded customers. Paxos no longer supports BUSD withdrawals from the Paxos platform.

Redeeming BUSD through Paxos

Paxos customers can redeem supported BUSD by depositing native ERC-20 BUSD into their Paxos account. Once the deposit is complete, BUSD is credited as USD in the Paxos account. Customers can then withdraw USD, subject to account review, banking hours, and applicable withdrawal processing requirements.

Non-Paxos customers must have an account in order to redeem BUSD directly with Paxos. Non-institutional persons should email support@paxos.com for BUSD redemptions. New account reviews may take longer during periods of high request volume.

The Paxos team may contact customers for additional information. To help avoid delays, customers should respond promptly to any outreach about their account or redemption request.

Supported networks

Paxos only supports redemptions for BUSD natively issued on Ethereum as an ERC-20 token. Paxos does not support wrapped BUSD, Binance-Peg BUSD, BUSD on BNB Smart Chain/BSC, or BUSD on other networks. Depositing unsupported versions of BUSD to Paxos may result in loss of funds.

If BUSD is held on Binance, Binance.US, or another exchange, customers should confirm the network before sending funds to Paxos. The BUSD sent to Paxos must be native ERC-20 BUSD.

Deposits, pending status, and processing

When a crypto deposit is sent to Paxos, it must first be recognized as a valid blockchain deposit and receive sufficient on-chain confirmations. After confirmation, supported stablecoin deposits such as BUSD are reflected in the Paxos account as 1:1 USD.

BUSD deposits, account reviews, and redemption requests may take longer during periods of high request volume. If a deposit or redemption is pending, customers should monitor their account and respond promptly if Paxos requests additional information.

Wire withdrawals and timing

BUSD redemption can be initiated on weekends, but USD wire withdrawals are processed according to banking hours. Wire withdrawals can only be sent on weekdays and may take up to 5 days to reach the recipient bank.

For U.S. domestic wires, withdrawals typically reach beneficiary banks T+0 when submitted on a weekday before the same-day processing cutoff. International wire transfers may take 2–5 days, and Paxos is not responsible for delays caused by intermediary or recipient banks.

If a wire withdrawal is canceled, the funds remain safely in the customer’s Paxos account and are reflected in the account balance. Restrictions may be determined by banking partners and can depend on the dollar amount or geography of the wire destination. Customers may re-initiate a transfer when available.

Existing BUSD and exchange activity

• BUSD in self-custody wallets: Paxos-issued ERC-20 BUSD remains backed 1:1 by USD reserves, even if held in self-custody or another external wallet. Customers can deposit supported ERC-20 BUSD into Paxos to redeem it for USD.

• BUSD held on exchanges: Customers commonly ask how to redeem BUSD acquired or held on Binance, Binance.US, or other exchanges. Paxos can only support redemption after native ERC-20 BUSD is deposited to Paxos.

• BUSD sold below $1 elsewhere: Paxos is not responsible for trading actions taken on another exchange.

Common questions

• Can I still redeem BUSD? Yes. Paxos continues to support redemption of native ERC-20 BUSD for USD for eligible customers.

• Can I withdraw BUSD from Paxos? No. Paxos no longer supports BUSD withdrawals from the Paxos platform. Customers may redeem supported BUSD for USD.

• Can I convert BUSD to another Paxos-issued stablecoin? Paxos has allowed customers to redeem BUSD for USD or convert BUSD to Pax Dollar (USDP), subject to account eligibility and available account functionality.

• Can I redeem BUSD on weekends? Yes, BUSD redemptions can be initiated on weekends. USD wire withdrawals, however, are processed during banking hours and may be delayed until the next business day.

• What BUSD networks are unsupported? Wrapped BUSD, Binance-Peg BUSD, BUSD on BNB Smart Chain/BSC, and BUSD on any non-Ethereum network are not supported by Paxos.

• What if my deposit or redemption is pending? Crypto deposits need sufficient on-chain confirmations, and reviews may take longer during periods of high volume. Customers should respond promptly to Paxos if contacted.