Binance recently announced its stablecoin called BUSD (Binance USD). The new offering will be pegged 1:1 to the US dollar. In other words, one BUSD can be bought or sold for one US dollar.
Changpeng Zhao, Binance CEO, believes this move will help unlock various financial services and widen the cryptocurrency usage. What strikes this as an important news is the approval from the regulators.
New York regulators have approved the launch of BUSD, so traders from NYC can legally participate and trade BUSD once the token is launch. In fact, we would like to share four simple facts around this new stablecoin:
- BUSD will be built on the Ethereum blockchain (ERC20 token). In the future, it may migrate to the Binance chain (BEP2)
- BUSD will be available for purchase this month. One can directly purchase the token from the Paxos.com platform or from Binance.com
- BUSD will be traded against Bitcoin, Binance Coin, and Ripple. Pairs are as follows: BUSD/BTC, BUSD/BNB, and BUSD/XRP
- BUSD approval received by Binance and Paxos is from the New York State Department of Financial Services (NYDFS).
Last year, CZ tweeted the company is working with banks to support fiat.
Through the partnership with Paxos, which allows all of its bank accounts to be audited every month, we believe Binance’s BUSD will have a rapid acceptance among the millions of Binance users.