Since the Paxos/BUSD news broke yesterday we’ve seen a 4.2% ($685M) drop in stablecoin supply of BUSD. At the same time, USDT has seen a 1.37% ($935M) increase over the same period, suggesting the majority of BUSD flows have been going into USDT. The data also suggests some USDC flows into USDT as investors speculate on a potential SEC litigation against Circle as well.

While Paxos is still minting USDP, so far investors are not redeeming BUSD for USDP, instead opting for an off-shore stablecoin like USDT. The SEC enforcement is pushing more users to off-shore stablecoins.