Leading cryptocurrency exchange Binance is all set to launch a dollar-backed stablecoin – Binance USD (BUSD) – that has gotten the approval of the New York Financial Services Authority (NYDFS). The exchange announced that NYDFS has blessed the new proposal that Binance is launching in partnership with Paxos Trust Company.
According to a press release, Binance Stable Coin is backed by US Dollar at 1: 1 ratio. The product has joined Paxos Standard and Gemini Dollar as NYDFS approved stablecoins.
Certified Paxos customers can purchase BUSD tokens directly through their wallets, using either US dollars or PAX (stabilized coins) at launch. Binance users can trade BUSD for Bitcoin, Binance Coin or XRP. The exchange previously announced that it would issue stake coins worldwide as part of the Venus Project. Binance has already issued fixed coin in Bitcoin (BTCB) and 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.”
Binance has announced a dollar-backed stablecoin approved by NYDFS and has partnered with Paxos. Binance USD is the latest stock coin held by Paxos. The first crypto company (itBit Trust Company), which received a trusted charter from NYDFS in 2015, now keeps a reserve of dollars for Paxos Standard stake coin and Huobi’s HUSD token.
According to the company, Paxos will act as the manager and issuer of BUSD and will regularly audit dollar holdings.
Rich Teo, the co-founder of Paxos, said in a statement that BUSD would be “an important step towards long-term stability in the global crypto market.” “Paxos is leading the digital trust space and we are happy to work with them when developing native stablecoins,” CZ said.