BUSD (Binance USD)

Overview

BUSD (Binance USD) is a stablecoin pegged to the value of the U.S. dollar, designed to provide the same stability and liquidity as the traditional dollar through blockchain technology. This digital currency was launched by Paxos Trust Company (Paxos) in cooperation with Binance to meet the demand for stable value in the cryptocurrency market.

Background of issuance

BUSD was officially launched on September 5, 2019, jointly launched by Paxos and Binance. Paxos has been approved by the U.S. government since 2015 and is regulated by the New York Department of Financial Services.

Issuing Team

Paxos was founded by Charles Cascarilla in 2012 and is headquartered in New York, with offices in London and Singapore. Its board of directors includes former U.S. Senators and FDIC Chairman, who support the registration and compliance of BUSD.

Features and Benefits

Stability: BUSD is pegged one-to-one with the U.S. dollar to ensure its stable value. For every dollar of BUSD created, Paxos will keep one dollar in a bank account as a reserve.

Transparency: Paxos regularly publishes reserve and audit reports to ensure the stability and credibility of BUSD. Users can view these for themselves on the Paxos website.

Compatibility: BUSD is issued on Ethereum as an ERC-20 token and supports the BEP-2 and BEP-20 standards, which means it can be used on multiple blockchain platforms and exchanges.

Low fees: BUSD is issued and redeemed without any additional fees, providing users with a convenient and economical way to trade.

Regulatory compliance: Paxos is approved and regulated by the US government, providing users with higher trust and security.

Application scenarios

BUSD has a wide range of application scenarios in the cryptocurrency market. It can be used for a variety of purposes such as trading, payment, lending, savings, and cross-border remittances. Due to its characteristics of being pegged to the US dollar, BUSD has also become an option for safe-haven assets. When the market fluctuates greatly, users can convert other cryptocurrencies into BUSD to preserve value.

Security

All US dollars in Paxos accounts are insured by the FDIC (Federal Deposit Insurance Corporation of the United States), which means that even if something unexpected happens to Paxos, users' funds can be protected. In addition, Paxos has also adopted a variety of security measures such as multiple verification mechanisms, private key protection, and security reminder functions to ensure the security of user accounts and assets.