Binance, the largest digital currency exchange in the world in terms of trading volume, and Paxos, a digital asset trust entity, have come together to unveil a stablecoin pegged to USD. The soon-to-be-launched stablecoin is referred to as BUSD (Binance USD). Binance shared this new update with the crypto community through their official Twitter handle on 5th September 2019, followed by a detailed blog post.
As per the announcement, the NYDFS (New York State Department of Financial Services) has already approved the stablecoin which will be receiving the USD backing on a ratio of 1:1. The announcement post also disclosed that this new stablecoin would be developed on the blockchain of Ethereum. However, it might be migrated to Binance Chain in the future.
The blog stated that BUSD would be made available later in the ongoing month on the platform of Paxos for direct purchases and redemptions. Moreover, the crypto enthusiasts will also be able to trade BUSD on Binance.com against BNB (Binance Coin), BTC (Bitcoin), and Ripple’s XRP for starters. Paxos will handle the roles of the issuer of this upcoming stablecoin as well as its USD custodian, added the firm.
The Co-Founder and Asia CEO of Paxos, Rich Teo, also shared his views on this development. He said that the approval by the NYDFS for BUSD is an important step towards the long-time stability in the global markets of digital currency. Continuing further, Teo said that their brand symbolizes consumer protection, transparency, and regulatory integrity for all their partners. They’re proud that their stablecoin as a service facilitates trusted firms, such as Binance, to launch customized products for their userbase, added Teo.
CEO of Binance, Changpeng Zhao (CZ) commented that they are thrilled to work with the prominent digital trust company like Paxos for building their native stablecoin. CZ was also quoted as saying,
We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD, including more use cases and utility through the power of stable digital assets.
The blog also revealed that more details on this association would be shared at the Invest: Asia 2019 where CFO of Binance Mr. Wei Zhou and Teo will indulge in a live discussion on 12th September at 4:20 p.m. (local time).
It is vital to note that BUSD is the most recent stablecoin which has Paxos to hold its reserves. Paxos is the first crypto company to have received the NYDFS trust charter in 2015.
Meanwhile, Binance is consistently going ahead in the stablecoin arena. It had listed British pound-pegged BGBP stablecoin in July. It is also working up to unveil Venus, much like Facebook’s Libra coin.