Binance Pulls the Plug on Pax Dollar With a Hard Deadline

Binance will remove all Pax Dollar (USDP) spot trading pairs on 24 September at 03:00 UTC, according to a notice published on 8 September. The announcement gives holders about two weeks to exit positions on the exchange. Binance described the move as the outcome of a routine periodic review of listed digital assets but did not name a specific reason for dropping the token.

The shutdown is staged rather than immediate. Margin lending for USDP ends on 11 September, Binance Pay and pool services close on 16 September, and Earn and copy-trading stop on 17 September. After spot trading goes dark on 24 September, deposits will still be credited until 25 September. Standard withdrawals remain available until 24 November at 03:00 UTC, after which Binance may convert any remaining USDP balances into an unnamed stablecoin at a rate it has not guaranteed. A separate announcement is expected before any conversion, and the exchange has urged users to move funds to a self-custody wallet, another exchange or a Paxos account.

A small stablecoin losing reach

USDP's circulating supply stands at roughly 29.2 million tokens, a market capitalisation of about $29 million, according to CoinGecko. Daily trading volume was $14.7 million on 9 September. Binance accounted for around 3% of that volume as of the same date, while more than half traded on Gate.io. The delisting therefore removes the token's most prominent venue rather than its deepest one, and is likely to compress activity further.

Paxos issues USDP through Paxos Trust Company, N.A., a national trust bank supervised by the OCC, and says the token remains redeemable one-for-one against the U.S. dollar, with reserves held entirely in cash and cash equivalents. USDP runs on Ethereum and Solana, and Paxos acts as a qualified custodian with segregated, bankruptcy-remote accounts. Paxos has not issued a public statement on the delisting.

The issuer has already lost one higher-profile product. New York's Department of Financial Services ordered Paxos to stop minting BUSD in February 2023, Binance formally discontinued it later that year, and the regulator subsequently fined Paxos $26.5 million over compliance failures tied to the token. USDP was positioned as a cleaner, fully regulated successor, but its supply has contracted while USDT and USDC absorbed the market. Binance said it reviews listings on trading volume, liquidity, network security, regulatory compliance, project transparency, tokenomics and community sentiment. Stablecoin activity remains concentrated around Tether's USDT and Circle's USDC, which together represented roughly 94% of major stablecoin circulating supply in early September.