Coinbase CEO Armstrong: We Delisted BUSD Due to Liquidity Concerns

The exchange previously said it made the move because BUSD didn’t meet its listing standards, without going into any detail.

AccessTimeIconMar 1, 2023 at 5:00 p.m. UTC
Updated May 9, 2023 at 4:09 a.m. UTC

Coinbase CEO Brian Armstrong said the exchange decided to suspend trading of Binance USD (BUSD) because the company had concerns about its liquidity.

The crypto exchange had previously said the reason for delisting BUSD was that based on its own internal monitoring and review processes the stablecoin no longer met its listing standards. Coinbase didn’t supply any additional details.

On Wednesday morning, Armstrong appeared on Bloomberg TV and gave a more detailed explanation for the move.

“The reason we did that was that Paxos, the issuer of BUSD, had been ordered to stop minting it, so we were concerned about liquidity issues for our customers,” Armstrong said.

The New York Department of Financial Services (NYDFS) recently ordered Paxos to stop minting the Binance-branded BUSD due to unresolved issues related to Paxos’ oversight of its relationship with Binance. The Securities and Exchange Commission was also reportedly planning to sue Paxos for selling BUSD as an unregistered security.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Helene Braun

Helene is a New York-based news reporter at CoinDesk covering U.S. crypto exchanges and Wall Street. She is a recent graduate of New York University's business and economic reporting program and has appeared on CBS News and Nasdaq TradeTalks where she talked about the market. She holds BTC and ETH.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.