06 September, 2019
The largest cryptocurrency exchange in the world, Binance, has announced the launch of stablecoin in the United States. The new stable Binance USD token (BUSD) has been approved by the New York Department of Financial Services (NYDFS). According to a press release, the stable Binance coin will be provided with US dollars in a 1: 1 ratio. The offer combines Paxos Standard and Gemini Dollar as a stable coin approved by NYDFS.
BUSD will trade in pairs with Bitcoin, Binance Coin and XRP. Exchange users will be able to conduct transactions with a stable coin this month.
The coin was developed in conjunction with Paxos, which was already creating the PAX stablecoin. According to the company, Paxos will act as custodian and issuer for BUSD, and will regularly review dollar assets. Paxos co-founder Rich Teo said BUSD will be a vital step towards the long-term stability of global cryptocurrencies. He added that Paxos' offer allowed Binance to customize a new product for its users.
Also, representatives of the exchange said they had permission from the New York State Department of Financial Services to service BUSD. Therefore, residents of American cities will be able to trade stablecoins.