What is BUSD? Binance USD (BUSD) is a USD-backed stable coin produced by crypto exchange Binance and blockchain infrastructure outfit Paxos Trust Company. Each BUSD token aims to maintain the value of $1.
How does BUSD work?
Essentially, BUSD is a USD-backed stable coin, also called a fiat-backed stablecoin. Each BUSD token aims to maintain a value of $1, backed 1:1 by reserves. The reserve capital backing BUSD is held in fiat currency, U.S. Treasury bills or both, making each BUSD token redeemable for $1.
What is the purpose of Binance USD (BUSD)? U.S. dollars themselves do not run on any blockchain, which can make it challenging to trade in and out of crypto assets. Stablecoins such as BUSD essentially look to offer people a way to hold their USD value while still keeping their funds in the crypto ecosystem. BUSD use cases include using the asset to transact stable dollar value on the blockchain and earning interest via Binance’s Simple Earn product.
Who is behind BUSD? Paxos and Binance oversee BUSD. Paxos is responsible for issuing the asset and custodying the funds backing BUSD. Is Binance USD (BUSD) secure? BUSD functions under U.S. regulatory approval from the New York State Department of Financial Services.
BUSD details
While primarily built on the Ethereum blockchain, BUSD is also available on other blockchains via Binance-Peg BUSD. Wondering how to buy BUSD? BUSD can be purchased through several locations, including on Paxos’ platform or the Binance exchange. Curious about the BUSD total supply and the BUSD marketcap? That and more are available in the box at the top of the page, with a BUSD live price chart below it.
