Binance USD (BUSD) was launched in September 2019. BUSD has reached the $10 billion milestone, ranking 10th in the entire crypto market and 3rd among stablecoins by market cap, making it the fastest growing stablecoin in the space. BUSD was created in partnership between Binance and Paxos, aimed at combining the trust of the Paxos platform with the utilization opportunities of Binance and the greater crypto ecosystem.
Paxos-issued stablecoins are regulated by the New York Department of Financial Services (NYDFS) as a financial product that is specifically authorized and supervised by our regulator. This means that a highly credible third-party sets specific rules for operation and monitors compliance with those rules to ensure maximum safety and transparency of BUSD. In August 2020, Paxos stablecoins including BUSD became “Greenlisted” by the NYDFS, making it pre-approved for custody and trading by any of the NYDFS’ virtual currency licensees.
This is a key distinction with stablecoins that are issued by registered Money Services Businesses or Money Transmitters where no regulator oversees the issuance of the stablecoin.
BUSD has since grown to become the second most actively traded stablecoin in the ecosystem after USDT (Tether), according to Coingecko and it has been listed by platforms such as Blockfi, Celsius and Crypto.com. Within DeFi, BUSD is among the top 3 stablecoins and the most actively used. On the Binance Earn platform, BUSD is the highest yielding stablecoin savings product, providing users with an Annual percentage yield (APY) ranging from 2%-6% to 10-50%.
The use cases for stablecoins will undoubtedly expand as we work together to revolutionize our financial system. Users can be assured that BUSD will continue to be amongst the most liquid, widely used and highest earning, all while being the largest stablecoin that offers the highest regulatory standards.
Our monthly newsletter covers the latest perspectives and important topics focused on the crypto landscape for enterprises. Subscribe to stay informed!
© 2021 Paxos Trust Company, LLC All Rights Reserved. NMLS #1766787