Binance is about to launch a dollar-pegged stablecoin called BUSD in collaboration with the Paxos Trust Company.
The stablecoin has also already received approval from the New York Department of Financial Services (NYDFS), and will be backed by US dollars at a ratio of 1:1.
In addition to BUSD, the NYDFS has also approved Paxos Standard (PAX) and PAX Gold (PAXG).
Paxos already holds dollar reserves for its stablecoin Paxos Standard (PAX) and the HUSD token of Huobi. The company will act as both the reserve custodian and token issuer, and will regularly audit the quantities.
At the time of launch, verified Paxos customers will be able to purchase BUSD tokens through the company’s wallet, using both US dollars and their own stablecoin PAX.
After that, BUSD will of course also be listed on Binance, where it will be tradable for bitcoin (BTC), Binance Coin (BNB) and Ripple (XRP).
According to some rumours, BUSD will run on the Ethereum blockchain.
Binance’s CEO, Changpeng CZ Zhao, 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. Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin”.
Paxos co-founder Rich Teo added:
“[BUSD] “is a vital step towards long term stability in global crypto markets”.
Some time ago, the exchange announced the launch of the Venus project, through which it intended to issue a series of regional stablecoins, as an alternative to Facebook’s Libra. In addition to BUSD, it has already launched the stablecoin BGBP anchored to the British pound, but this one based on the blockchain of Binance Chain.
The exchange now offers a wide range of stablecoins to its users, however, given the evolution of the project and the prospects, much more is to be expected in the future.