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, giving holders two weeks to exit positions on the exchange. The delisting announcement, posted on 8 September, follows what Binance called a routine periodic review of listed digital assets but names no specific reason for dropping the token.

A $29 Million Stablecoin Loses Its Most Visible Venue

USDP's circulating supply sits at roughly 29.2 million tokens with a market capitalisation of about $29 million, according to CoinGecko data. Daily trading volume was $14.7 million on 9 September, per CoinGecko.Binance accounted for roughly 3% of USDP's daily volume as of 9 September, per CoinGecko's markets tab, with more than half trading on Gate.io. The delisting removes the token's most visible venue rather than its deepest one, and is likely to compress trading activity further. The delisting will roll out in stages, with margin lending ending on 11 September. Binance Pay and pool services will also shut down on 16 September. Earn and copy-trading close on 17 September, and after spot trading ends on 24 September, deposits will be credited until 25 September. Standard withdrawals remain open until 24 November at 03:00 UTC, after which Binance may convert remaining USDP balances into another unspecified stablecoin at no guaranteed rate.

Paxos Keeps USDP Redeemable, But the Audience is Shrinking

Paxos issues USDP through Paxos Trust Company, N.A., a national trust bank subject to regulatory oversight by the OCC, and maintains that USDP remains redeemable one-for-one against the U.S. dollar, with reserves held entirely in cash and cash equivalents.The token is available on Ethereum and Solana, and Paxos operates as a qualified custodian with segregated, bankruptcy-remote accounts. Yet redemption guarantees matter only if holders find the token worth holding. Paxos already lost its higher-profile stablecoin when the New York Department of Financial Services ordered it to stop minting BUSD in February 2023. Binance formally discontinued BUSD in late 2023, and the NYDFS later fined Paxos $26.5 million over compliance failures tied to that product. USDP was meant to be the cleaner, fully regulated successor, but its supply has contracted steadily while USDT and USDC have absorbed the market.

What Binance's Review Criteria Signal

Binance stated it evaluates listed tokens against trading volume, liquidity, network security, regulatory compliance, project transparency, tokenomics, and community sentiment. With a $29 million market cap and a shrinking user base, USDP appears to have fallen short on several of those benchmarks.The delisting concentrates stablecoin activity further around Tether's USDT and Circle's USDC, which together account for approximately 94% of major stablecoin circulating supply, and roughly 85% of total stablecoin market capitalisation, as of early September 2026.Holders still on Binance after 25 November face an automatic conversion into a stablecoin the exchange has not yet named, at a rate Binance has not guaranteed. A follow-up announcement will precede any conversion, but the exchange has urged users to withdraw to a self-custody wallet, an alternative exchange, or directly to a Paxos account before that window closes.Paxos has not issued a public statement in response to the delisting. The next date to watch is 24 September, when spot trading goes dark, and USDP's remaining exchange footprint becomes clearer.