It’s been nearly a month since the SEC & NYDFS’s enforcement against Paxos and BUSD. So what’s happened? BUSD redemptions have ramped up quite quickly, with BUSD down nearly $8B (~50%) in the period. Overall, stablecoins are down ~$2.4B, with both USDT and USDC seemingly absorbing ~$2.5B each of the BUSD outflow. Considering all that has gone on over the past month with rumors of Operation Chokepoint 2.0, Silvergate’s growing concerns and Signature’s reduced exposure, the overall stablecoin drawdown does not seem too bad.

Interestingly enough, the theory of BUSD redeemers just swapping for USDP (Paxos’ other stablecoin) have not come true, with USDP the second largest loser in the period.