The largest cryptocurrency exchange Binance is now launching a new USD-pegged stablecoin in the U.S. The more exciting news is that the new coin, called BUSD, has been approved by the New York Department of Financial Services or NYDFS. The other partner on the project is Paxos Trust Company.
The Binance stablecoin will be pegged to the USD on a 1:1 ratio, as reported by press.Right after the launch, all customers of Paxos Trust will be able to buy the Binance USD stablecoin token through Paxos’ wallet either by USD or PAX, which is the stablecoin of the company. On the other hand, Binance customers will be able to transact with BUSD in exchange for XRP, Binance Coin, or Bitcoin.
This is the next strategic step for Binance in the stablecoin crypto space, part of the Venus project that the exchange launched. The other stablecoins issued by Binance are BGBP and BTCB. The CEO of Binance, Mr. Changpeng Zhao, commented the following, as reported by Coin Desk:
We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD, including more use cases and utility through the power of stable digital assets.
In this new partnership, Paxos will be the issues and official custodian of the Binance USD coin and all the audits that will be conducted on the platform. Both Binance and Paxos are working together to strengthen the concept of “stablecoin as a service”.