BUSD, Binance’s new stablecoin anchored to the value of the dollar, was developed in collaboration with Paxos Trust Company and will be listed on the exchange on September 16th.
The launch date was announced jointly by the co-founder and CEO of Paxos Trust Company, Richmond Teo, and Binance CFO, Wei Zhou. The launch was also made possible thanks to the approval of the New York Department of Financial Services (NYDFS).
The stablecoin will be backed by US dollars with a 1:1 ratio and, according to some rumours, BUSD will run on Ethereum’s blockchain.
BUSD: Binance’s second stablecoin
BUSD, the second stablecoin developed by Binance after BGBP, will be available directly from the Paxos platform as of today. Whereas on Binance it will be listed for trading on September 16th against BTC, BNB and XRP.
Richmond Teo said he was pleased with this collaboration and confident that BUSD will bring transparency and stability to the cryptocurrency world. Wei Zhou added the following:
“Launching a stablecoin approved by the New York State Department of Financial Services (NYDFS) is a strategic step for Binance to provide on-chain financial services for users across the world. We are happy to work with Paxos, a reputable leader on digital trust services, and hope to launch more compliant stablecoins backed by fiat reserves in the future, introducing more stability to the cryptocurrency world”.
Recently, the exchange announced the Venus project with the intention of issuing a series of regional stablecoins as an alternative to Facebook’s Libra.
Binance CEO Changpeng CZ Zhao believes that BUSD can pave the way for new financial services and he has also expressed his enthusiasm for working with Paxos. Paxos Trust already has its own cryptocurrency: Paxos Standard (PAX), which was launched in September 2018 and is one of the better known regulated stablecoins.