ChainAegis: BUSD On-Chain Data Analysis Report

On February 13, 2023, regulators targeted stablecoins directly, with the New York State Department of Financial Services ordering crypto financial institution Paxos Trust Co. to stop issuing BUSD tokens. Stablecoins are cryptocurrencies pegged to relatively low-volatility assets, such as fiat currencies or other crypto assets. Stablecoins aim to maintain stable prices, allowing users to largely avoid the risks of market volatility. Stablecoins can be categorized into three types based on collateral: fiat-backed, cryptocurrency-backed, and algorithmic (non-collateralized).