![]() dollar, undergoing monthly audits conducted by Withum, an accounting firm. BUSD has consistently maintained its 1:1 ratio with the U.S. Following its launch, the stablecoin received a positive response from the community, leading to its expansion to 48 different USD pairs. BUSD became purchasable with Paxos USD on September 12, 2019, and was later listed on the Binance platform for trading against Ripple (XRP), Bitcoin (BTC), and Binance Coin (BNB) on September 20, 2019. On September 5, 2019, Binance and Paxos unveiled their partnership to introduce the BUSD stablecoin, confirming the approval of the stablecoin by NYDFS. This functionality also enables seamless interoperability across Ethereum-supported wallets or exchanges. BUSD is compatible with various ERC-20 smart contracts and also supports BEP-2, ensuring secure and trustless transactions with BUSD. Conversely, when someone sells or redeems 100 BUSD, the corresponding $100 payment is deducted from Paxos reserve accounts, and the 100 BUSD received is then permanently removed (burned) from circulation. For instance, when 100 BUSD is bought, an equivalent 100 BUSD is minted for the purchase, and a $100 payment is added to Paxos reserve accounts. The key feature of BUSD is its deflationary model, which preserves each BUSD token's 1:1 parity with the US dollar. Overall, BUSD is a stablecoin with versatile features, fully backed by reserves held in dedicated omnibus accounts at insured US banks, in fiat cash, and/or US Treasury bills, including investments in repurchase agreements or money-market funds. There are three variants of the BUSD token: ERC-20 BUSD tokens, issued by Paxos, a regulated entity approved by the NYDFS in partnership with Binance Binance-pegged BUSD tokens, independently minted by Binance on BNB Chain, Polygon, and Avalanche and linked to BUSD at a 1:1 ratio and wrapped or bridged BUSD tokens, issued on different blockchains with distinct mechanisms for maintaining their price peg, offering assurances distinct from Binance or Paxos. ![]() īUSD is a stablecoin pegged to the US dollar at a 1:1 ratio through collaboration between Binance and Paxos. BUSD offers users the capacity to transact with various digital and blockchain-based assets while aiming to mitigate the risks associated with volatility. It is issued by Binance in collaboration with Paxos and is authorized and regulated by the New York State Department of Financial Services (NYDFS). Binance USD (BUSD) is a stablecoin pegged 1:1 to the value of the US dollar. ![]()
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