Binance, the world’s largest crypto exchange, has partnered with Paxos Trust Company, to launch a new, USD-backed stablecoin called BUSD.
— Binance (@binance) September 5, 2019
According to the announcement, BUSD is backed by the dollar and has already received approval from the New York State Department of Financial Services (NYDFS).
The stablecoin will first be made available on Binance later this month with BTC, BNB and XRP pairs. Investors will also be able to purchase BUSD directly from the Paxos platform. In both cases, Paxos is serving as the USD custodian and issuer of the tokens.
“Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin,” said Binance CEO Changpeng “CZ” Zhao. “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.”
Paxos co-founder Rich Teo added, “NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets. We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users. The Paxos brand symbolizes regulatory integrity, consumer protection and transparency for all of our partners.”
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.