Paxos can mint additional BUSD per market demand. The trading and investment needs of market participants ultimately determine how much BUSD is required. Since BUSD exists as a transactional asset, it has no maximum supply. Its interoperability across four popular chains - Ethereum, BNB Chain, Polygon and Avalanche - makes it well-suited to cross-chain value transfers. Individuals and companies whose transactional needs require frequent movement of funds between the crypto/blockchain environment and traditional finance markets may choose to use BUSD. On BNB Chain, BUSD is used for payment transactions since its price stability acts as a hedge against volatile crypto price fluctuations.īUSD is also used for trading and crypto operations requiring a high degree of price stability. While its key rival, USDT, is more actively used for trade, BUSD, with its solid compliance and security features, is preferred for storing crypto assets long-term. What Is BUSD Used For?īUSD is widely used as a fiat-linked store of value. There have been very few cases - always short-lived - when the coin has deviated from the dollar by more than a cent. Launched in September 2019, BUSD has been remarkably successful in maintaining its close 1:1 peg to the greenback. In terms of trading volumes, BUSD typically has lower volumes than USDT but somewhat higher volumes than USDC. Furthermore, like USDC, it features similar high-quality compliance standards and reserve transparency. However, BUSD is a better regulated and more compliant asset than USDT. Compared to BUSD, USDT and USDC are available on a wider range of blockchain platforms. The three leading USD-pegged stablecoins are BUSD, Tether (USDT) and USD Coin (USDC). BUSD is issued on Ethereum (ETH), but is also supported on BNB Chain (BNB), Polygon (MATIC) and Avalanche (AVAX). It’s used extensively on the majority of the leading crypto exchanges as an asset with a firm peg to the U.S. The BUSD (and associated USD) supply levels are externally audited every month for transparency and compliance purposes.īUSD is one of the best-regulated, most compliant and well-backed stablecoins in the crypto industry. It was launched jointly by Binance Holdings Ltd., the owner of the Binance crypto exchange, and Paxos, a New York-based financial technology company.īUSD is fully backed by cash and cash equivalent reserves and has been approved by the New York State Department of Financial Services (NYSDFS). Binance USD (BUSD) is a stablecoin cryptocurrency pegged to the U.S.
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