What is Binance USD? $BUSD

“We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD.”

– Changpeng “CZ” Zhao, Binance CEO

Note: This is part of Nebeus’ new Coin Analysis series, where you can discover the latest crypto coin news.

What is Binance USD ($BUSD) and how does it work?

In less than three years, BUSD has risen to the sixth spot among cryptocurrencies, solidifying its position as one of the most widely used stablecoins.

What is Binance USD ($BUSD)?

Binance and Paxos have collaborated to create a stablecoin called BUSD that is pegged to the US dollar. There is one US dollar in reserve for every BUSD token in circulation. BUSD was created with the intention of giving investors and traders a less volatile cryptocurrency option.

What is the purpose of Binance USD?

When it comes to trading volume, Binance tops all other cryptocurrency exchanges. The addition of BUSD to the Binance platform is a calculated step toward broader cryptocurrency adoption. By including stablecoin trading, Binance can reach customers who were previously put off by the market's perceived instability.

By having this stablecoin used in multiple pairs on Binance.com, such as BTC/BUSD, ETH/BUSD, and XRP/BUSD, the exchange is able to promote itself and attract new customers. Binance can increase its user base by making more trading pairs available to traders. Native stablecoins are useful for Binance because they allow the exchange to provide a more consistent experience for its customers.

How Does Binance USD Work?

There is a wide variety of stablecoins out there to choose from. With BUSD, you can rest assured knowing that for every token in circulation, one dollar is held in reserve at a bank.

When compared to other popular stablecoins like DAI, which are collateralized with other cryptocurrencies, this is a notable difference.

Binance and Paxos have joined forces with some of the world's largest banks to guarantee a sufficient supply of US dollars to back all BUSD in circulation. They have pooled their resources to create a reserve that will be used to guarantee the value of all BUSD tokens.

Who is Paxos?

Paxos is a licenced cryptocurrency issuer that operates under strict regulatory guidelines. Furthermore, they are the business that brought you the widely used PAX stablecoin. Paxos acts as a cryptocurrency custodian, so it stores the USD reserves that back BUSD tokens. Because of the BUSD's digital financial infrastructure, it can be exchanged for USD at any time.

Who is the Founder of $BUSD?

“BUSD is available across multiple blockchains, over 30 exchanges and has many popular use cases.”

– Binance USD

Binance announced the release of a new stablecoin in September 2019. Co-created with Paxos, a licenced financial institution that issues digital assets, this token is a product of the two companies. Binance CEO Changpeng Zhao promised that the new token will be backed one hundred percent by US dollars.

What is the $BUSD Token?

Instead of adapting its primary exchange to comply with U.S. regulations, Binance created a new exchange, named Binance.US. There are a large number of crypto users and owners in the United States. That's why it's so significant for Binance to tap into that market.

It's important to note that BUSD is an ERC20 token, which means it was developed on the Ethereum network. Nonetheless, BEP-2 is also supported. The Binance Exchange Protocol Version 2 (BEP-2) is a set of technical specifications for the development and exchange of digital assets on the Binance Chain.

What is important about the $BUSD Token?

For Binance, the introduction of Binance USD was a watershed moment. Up until now, the Ethereum blockchain was the platform of choice for stablecoin development. The Binance USD stablecoin was among the first to be developed for the Binance blockchain.

Binance clearly made this choice for strategic reasons. They differentiated themselves from Ethereum's dominant stablecoins by releasing one on their own blockchain.

The Binance USD token saw explosive growth in the months following its introduction. In no small part, this can be attributed to Binance's tireless effort in advertising its services. Several major cryptocurrency markets, including OKEx and Huobi, also listed the token for trading.

Is $BUSD still a good investment today?

Throughout all of 2020, interest in Binance USD remained high. The total value of all coins that had been traded on exchanges rose by over 1,360 percent. At the beginning of 2021, BUSD had a market cap of around $1 billion. A year later, by 2021's end, it had risen to more than $14.6 billion. Proof of demand for USD-backed stablecoins beyond Ethereum was demonstrated, making this a significant achievement for Binance and Paxos.

It's generally agreed that Binance USD is one of the most successful stablecoins available today. The token is now widely used and widely accepted within the cryptocurrency market. As the story develops, Binance maintains its position as the industry leader.

How to buy Binance USD? $BUSD

There are numerous cryptocurrency exchanges that support BUSD. You can buy it on Nebeus in just a few clicks and earn on BUSD too.

Do your own homework first, and never put up more money than you can afford to lose.

What makes $BUSD different? Benefits of Binance USD

The primary advantages of Binance USD come from the combination of Binance's standing and Paxos' safety, giving users a digital dollar they can use without worrying about wild fluctuations in value. It's a very attractive stablecoin when coupled with monthly attestation reports and strict regulations.

It Uses the Binance Chain to Offer Wide Interoperability

Binance built its own blockchain platform, called Binance Chain. Binance is able to provide its customers with a diverse selection of digital assets because of the interoperability between the company's native chain and the most widely used smart contract platform. BUSD is accepted by a wide variety of wallets, lending marketplaces, and crypto-loan platforms such as Nebeus. This lays the groundwork for Binance USD to gain widespread use.

An individual interested in trading on the Binance DEX, for instance, could use Bitcoin to acquire Bitcoin US Dollars (BUSD) from the Binance.com website. Converting BUSD to ETH allows users to take part in smart contracts built on the Ethereum platform. BUSD holders can use their holdings for a wide variety of purposes, including but not limited to:

Yield farming
Securing loans
Making purchases
and more.

$BUSD is Regulated by the NYDFS

New York State's financial regulator, the New York Department of Financial Services (NYDFS), has given its stamp of approval to this stablecoin. Each BUSD token is pegged one-to-one with US dollars, and this regulation, along with regular audits, helps to ensure that this is the case. Because of this guarantee, users of this stablecoin can rest assured that their investments are secure.

Binance USD Can Be Used on Binance Chain and Ethereum

As was previously mentioned, the BUSD token was developed using the ERC20 protocol, which is based on Ethereum. In addition, it works with Binance's BEP-2 protocol. In other words, the token is compatible with both Ethereum and the Binance Chain. A user who wishes to transfer their BUSD from one blockchain to another need only use Binance's Convert feature to effect the exchange.

Using the Binance Convert feature, customers can easily exchange their digital assets between different networks. Binance mediates the exchange, allowing the two blockchains to function together.

How many Binance USD ($BUSD) coins are there?

Max Supply: Infinite

Circulating Supply (23/01/2023): 16,030,973,401

Note: We gather our information from CoinGecko. The numbers written are correct at the time of writing.

What is the Current Price and current Market Cap of Binance USD? (23/01/2023)?

Current Price: $1.00

Current Market Cap: $16,050,660,456

Current Market Cap Position: #7

All-Time Low: $0.901127 on May 19th, 2021

All-Time High: $1.15 on March 13th, 2020

Note: We gather our information from CoinGecko. The numbers written are correct at the time of writing.

Conclusion

BUSD serves as a secure investment and a practical instrument for traders and investors. The coin is very trustworthy because of its regulated status and the fact that its reserves are held in reputable financial institutions and have been subjected to audits. Users of Binance's BNB Smart Chain or Binance Chain will find BUSD to be a reliable stablecoin to implement in their own projects.

Are you eager to start trading on Binance and using Binance USD? Connect with the platform's extensive user base on any of its channels:

You can sign up for a Nebeus account to buy, hold, and earn on your Binance USD investment.

La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.

What is Binance USD? $BUSD