Coinbase will suspend trading for the Binance USD stablecoin on March 13, the exchange announced on Feb. 27 on Twitter. The message mentioned its “listing standards” as being behind the decision. BUSD is the third-largest stablecoin by market capitalization.
The decision will apply to Coinbase.com , Coinbase Pro, Coinbase Exchange and Coinbase Prime, according to the Twitter thread. The exchange added, “Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.”
According to Coinbase’s website, its digital asset listings group votes on assets to be listed on the exchange, “informed by a rigorous vetting/review process that evaluates assets against legal, compliance, and technical security standards.” In addition, there are additional business assessments and ongoing monitoring to ensure an asset continues to meet standards.
The United States Securities and Exchange Commission reportedly issued a Wells notice — a notice of a planned enforcement action — to blockchain infrastructure platform Paxos Trust, the issuer of BUSD, around Feb. 12. The New York State Department of Financial Services ordered Paxos to stop issuing BUSD on Feb. 13, leading to a $2 billion drop in market cap within days.
