13.06.2021

Binance Launches Dollar-Backed Crypto Stablecoin With NYDFS Blessing

Moreover, the new Binance USD (BUSD) has received the blessing of the New York Department of Financial Services (NYDFS). The exchange announced Thursday that NYDFS had approved the new offering, which Binance is launching in partnership with the Paxos Trust Company.

Crypto exchange Binance is launching a dollar-backed stablecoin in the U.S.

The Binance stablecoin will be backed by U.S. dollars on a 1:1 ratio, according to a press release. The offering joins the Paxos Standard and the Gemini Dollar as an NYDFS-approved stablecoin.

At launch, verified Paxos customers will be able to directly purchase BUSD tokens through the company’s wallet using either U.S. dollars or PAX, its own stablecoin. Binance users will likewise be able to trade BUSD for bitcoin, binance coin or XRP.

The exchange previously announced its intention to issue stablecoins worldwide as part of its Venus project. Binance has already issued stablecoins pegged to bitcoin (BTCB) and the British pound (BGBP).

In a statement, Binance CEO Changpeng Zhao (“CZ”) said:

“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.”

Not the first

Binance USD is only the latest stablecoin whose reserves are being held by Paxos. The company, which was the first crypto firm to receive a trust charter from NYDFS in 2015 (as the itBit Trust Company), now custodies the dollar reserves for its own Paxos Standard stablecoin and Huobi’s HUSD token.

According to the company, Paxos will act as both the custodian and the issuer for BUSD, and will regularly audit the dollar holdings.

Paxos co-founder Rich Teo said in a statement that BUSD would be “a vital step towards long term stability in global crypto markets.” He added that Paxos’ “stablecoin as a service” offering allowed Binance to customize the new product for its users.

“Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin”, CZ said.

Binance Joins Forces With Paxos to Launch USD-Backed Stablecoin ‘BUSD’

Binance, the biggest crypto exchange by volume,and digital asset trust company Paxos announced its partnership to launch a USD-backed stablecoin, which has received approval from the New York State Department of Financial Services (NYDFS)

Binance USD available later this month

In a press release shared with Cointelegraph on Sept. 5, Paxos co-founder and CEO Asia Rich Teo shared that the NYDFS’s approval of the stablecoin Binance USD (BUSD) is a vital step towards long term stability in global crypto markets. He continued by saying:

“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.”

BUSD will be available for direct purchase and redemption 1:1 for U.S. dollars on the Paxos platform and for trading against Bitcoin, Binance Coin (BNB) and Ripple’s XRP on Binance.com.

CZ excited to work with Paxos

Binance CEO Changpeng Zhao – commonly known as “CZ” – said that Paxos is leading the digital trusts space and expressed that Binance is excited to work with them in developing their native stablecoin. He went on to say:

“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.”

Cointelegraph reported at the end of June that Binance and Paxos integrated a new fiat deposit gateway on Binance’s flagship trading platform, which enables traders to exchange fiat currency for the PAX Standard (PAX) stablecoin on the Paxos platform via wire transfer.

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