What is Binance USD?
Binance USD (BUSD) is a 1:1 USD-backed stablecoin issued by Binance, in partnership with Paxos, and approved and regulated by the New York State Department of Financial Services (NYDFS). BUSD emerged as a major stablecoin option in cryptocurrency markets, aided by its prominent use in Binance and other services associated with the centralised exchange.
A brief history of Binance USD
Binance USD was launched in September 2019 as a Binance-branded stablecoin that aims to combine the stability of the dollar with blockchain technology. Since its launch, BUSD has been incorporated as a stablecoin of preference within the network of Binance’s products and services, while also gaining support from major DeFi platforms, crypto wallets, and other services outside of Binance’s control.
How Binance USD works
A Binance USD unit is generated through depositing US dollars on the Paxos platform, which ensures the 1:1 US dollar backing of the stablecoin. BUSD uses the Ethereum blockchain, issued as an ERC-20 token. In addition, Binance offers a Binance-Peg version of BUSD (not issued by Paxos) on Binance Smart Chain and Binance Chain blockchains for transactions, supporting the BEP-2 and BEP-20 token standards.
What is Binance USD used for?
Binance USD is used for transferring digital dollars, trading on exchanges, providing liquidity to DeFi platforms, paying for goods and services from merchants that use the token, and more.
