Binance’s Stablecoin Partner Paxos Probed by New York Regulator

Paxos Trust Co., issuer of a Binance-branded token that ranks as the third-largest stablecoin, is being investigated in the US in the latest regulatory escalation to hit the cryptocurrency sector.

The New York State Department of Financial Services has recently begun probing Paxos, a person familiar with the matter said, asking not be identified discussing private information. The exact scope of the investigation is unclear.

Paxos, which also issues its own stablecoin called Pax Dollar, didn’t immediately respond to a request for comment. A spokesperson for the regulator said it can’t comment on ongoing investigations.

“The department is in ...