$10 Million in Paxos Stablecoins Printed Overnight Following Tether Allegations

More than 10 million Paxos Standard stablecoins were minted in the 18 hours after the New York Attorney General's bombshell allegations about rival issuer Tether.

"I think that's definitely a function of the news because PAX started trading at a very significant premium to Tether and the dollar."

"We don't pre-mint PAX, so the PAX [volume] is going up or down based on market demand for Paxos dollars so that increase is definitely related to market demand and I have to assume it's because of the Tether news."

Most of the new issuance was minted after the Tether news came out around 17:00 UTC, in these four transactions.

The NYAG claimed Thursday that crypto exchange Bitfinex had lost $850 million in customer and corporate funds to a payment processor, and was making up the shortfall by borrowing reserves from Tether, the company behind a dollar-pegged stablecoin of the same name.

Tether has long claimed that each of its nearly 3 billion circulating tokens are backed 1-to-1 by U.S. dollars.

Thursday's news rekindled long-simmering questions about whether Tether indeed has nearly $3 billion in holdings.

According to TokenAnalyst.io, stablecoins not named tether have seen massive volume increases over the past 24 hours, with the majority trading at a premium as well.

USDCoin, the Gemini dollar, TrueUSD, DAI and Pax have all seen their prices climb above the dollar as Tether fell to $0.99.

"We would expect that this action will cause capital to migrate from Tether to regulated and fiat-backed stable coins like USDS, USDC, TUSD and PAX.".