The market capitalisation of the stablecoin has decreased by around $2.5 billion as a result of the recent developments surrounding Binance USD. The co-founder and CEO of the cryptocurrency exchange with the highest trading volume in the world, Changpeng Zhao, claimed on Friday that money had shifted from the BUSD to the Tether.

Zhao emphasised once more that Binance does not issue Binance Dollars.

He claims that the market capitalization of Tether, or USDT, has increased from $67.8 billion to $70.1 billion, an increase of $2.37 billion.

He also said that USD Coin's market cap dropped from $42.3 billion to $41.5 billion, a decrease of $739 million.
BUSD market cap decreased by $2.45 billion (from 16.1 billion to 13.7 billion as of now), and the majority of it migrated to USDT.

Regulatory oversight is what caused Binance's stablecoin's market cap to decline.

The New York Department of Financial Services ordered Paxos Trust Company, the company that creates Binance USD, to stop producing BUSD tokens earlier this week on Monday due to a number of unresolved issues involving Paxos' control of its business relationship with Binance.

DFS stated that it is closely watching Paxos to ensure that it can carry out redemptions in a timely manner while adhering to tighter, risk-based compliance requirements.

DFS claims that the division gave Paxos permission to issue BUSD on the Ethereum network. But Binance-Peg BUSD is not issued by Paxos and was not authorised by the department to be placed on any blockchain.

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