Binance is set to launch a dollar backed stable coin in the United States according to reports. The new Binance stable coin will be known as the Binance USD (BUSD) according to an announcement made by the exchange.
The new Binance USD (BUSD) has reportedly received the backing of the New York Department of Financial services (NYDFS). According to the September 5 announcement, the exchange has received the approval of the NYDFS to launch the stablecoin which will be done in partnership with the Paxos Trust Company.
According to a press release, the Binance USD stablecoin will be backed by U.S Dollars on a ratio of 1:1. The BUSD officially joins the Paxos Standard and the Gemini dollar as an NYDFS-approved stablecoin. Once this Binance offering is launched, verified Paxos customers will be able to directly purchase BUSD tokens through the company’s wallet by using either the U.S dollars or PAX, Its own Stablecoin. Binance users will also be able trade BUSD for Bitcoin, Binance coin, or XRP.
Binance had previously revealed its intentions to issue stablecoins as part of the Venus project it had announced last month, much to the excitement of users worldwide. It currently has already issued stablecoins pegged to Bitcoin (BTCB) and the British Pound (BGBP).
In a statement about the imminent launch of the Binance stablecoin, Binance CEO Changpeng Zhao (CZ) said;
“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.”
Binance USD becomes the latest stablecoin whose reserves are being held by Paxos. The company which happened to be the first crypto firm to receive a trust charter from NYDFS in 2015 (as the itBit Trust Company) now holds the dollar reserves for its own Paxos Standard Stablecoin and Huobi’s HUSD token.
Paxos will not just be a custodian of the new NYDFS approved Binance stablecoin BUSD, but will also be an issuer and auditor of the same. A statement by Paxos co-founder Rich Teo hailed the partnership between his company and Binance. The statement read;
“BUSD is a vital step towards long term stability in global crypto markets.” He added that Paxos’ “stablecoin as a service” offering allowed Binance to customize the new product for its users. Binance CEO Changpeng Zhao in his part acknowledged the importance of Paxos as a partner.
“Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin,