Binance, the largest cryptocurrency exchange in terms of trading volumes, has launched a dollar-backed stablecoin in the U.S, dubbed Binance USD (BUSD).
The Binance stablecoin, launched in partnership with the Paxos Trust Company has received the approval from the New York Department of Financial Services (NYDFS). The coin will be backed by U.S. dollars on a 1:1 ratio, according to a press release. Paxos will act as both the custodian and the issuer for BUSD, and will regularly audit the dollar holdings.
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.
As previously reported, Binance has already issued stablecoins pegged to bitcoin (BTCB) and the British pound (BGBP).
“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 CEO Changpeng Zhao said.