Binance and Paxos to launch Binance USD (BUSD) Stablecoin

Binance, one of the largest crypto exchanges, and Paxos Trust company today announced their partnership to launch Binance USD (BUSD) Stablecoin.

Paxos Trust company is the first regulated trust company with blockchain expertise. On September 10, 2018, Paxos launched the ERC20 Paxos Standard Token (PAX), a stablecoin built on the Ethereum blockchain. PAX is approved and regulated by the New York State Department of Financial Services (NYDFS). PAX stablecoin is issued by the Paxos Trust Company.

The newly announced Binance USD (BUSD) has already received approval from the New York State Department of Financial Services (NYDFS), the announcement notes.

Executive Opinion

Paxos Co-Founder, and CEO Asia, Rich Teo, said, "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."

Binance CEO, CZ (Changpeng Zhao), said, "Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin. 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."

Binance and Stablecoins

BUSD will be available on the Paxos platform for direct purchase and redemption 1:1 for U.S. dollars later this month. In the same period, BUSD will be also available on Binance.com for trading initially against BTC, BNB, and XRP. The role of Paxos will be to serve as a USD custodian and issuer of BUSD, the announcement says.

In August 2019, Binance recently launched an Open Blockchain Project called "Venus". With this open initiative, Binance plans to develop localized stablecoins and digital assets. These localized stable coins and digital assets will be pegged to fiat currencies across the globe.

Binance crypto exchange already has USD market where some of the top cryptos are traded against five top stablecoins viz. USDT, PAX, TUSD, USDC, and USDS.