Binance USD (BUSD) is a stablecoin tied to the US dollar and has been approved by the New York State Department of Financial Services (NYDFS). Binance stablecoin will be available for direct purchase and redemption at the rate of 1 BUSD = 1 USD. BUSD is the result of a partnership between Binance and Paxos that acts as a custodian of US dollars and issuer of BUSD.
Starting from September 12, 2019, BUSD is available on the Paxos platform for direct purchase and redemption of 1: 1 for US dollars or PAX. On September 20, 2019, BUSD became available on Binance.com for trading in pair with BTC, BNB and other coins.
“Launching a stablecoin approved by the New York State Department of Financial Services (NYDFS) is a strategic step for Binance to provide on-chain financial services for users across the world,” said Binance CFO Wei Zhou.
BUSD was created in partnership between the largest and most trusted companies in the crypto space.
Paxos and BUSD are approved and regulated by the New York State Department of Financial Services, providing maximum consumer protection.
BUSD is 100% backed by US dollars in US banks insured by FDIC.
A leading audit firm will monthly confirm compliance with BUSD tokens and base US dollars.
Since Binance USD is a stablecoin, it is not suitable for trading.
BUSD is available for trading on Binance and Paxos exchanges only.
Where to buy BUSD cryptocurrency?
Like other stable coins on Binance, BUSD can be purchased on few exchanges only. Today, Binance coin USD is traded in pair with USDT on Binance. It is also traded in pair with Bitcoin (BTC), Binance coin (BNB) and Ripple’s XRP (more pairs to come). On Paxos website, you can convert between U.S. dollars, BUSD and PAX 1:1 anytime with zero fees. No fees apply for creating or redeeming BUSD.
Binance USD coin can be a great storage cryptocurrency solution for those who need a reliable option. The fact that it has been approved by NYDFS makes it a very perspective stable coin. However, the project is young, and only time will show whether it becomes a decent competitor to Tether (USDT).