Binance USD Price

What is $BUSD?

$BUSD is a stablecoin pegged to the US Dollar (USD), issued by Paxos. Approved by the New York State Department of Financial Services (NYDFS), $BUSD is available for purchase and redemption at a rate of 1 $BUSD to 1 USD. For every unit of $BUSD, one US dollar is held in reserve. In other words, an amount of US dollars equal to the total supply of $BUSD is held in custody by Paxos, acting as its reserves in FDIC-insured U.S. banks.

$BUSD is issued on Ethereum by Paxos and regulated by the NYDFS. Binance provides the pegged token service to lock $BUSD on Ethereum and issues an equivalent amount of Binance-peg $BUSD on other networks. Please note that Binance-Peg $BUSD is a Binance product. It is not issued by Paxos nor regulated yet by the NYDFS. Binance publishes its proof of reserve here.

What is unique about $BUSD?

The primary risk of stablecoins is that many of them aren’t fully backed by reserve currencies. $BUSD is always backed 100% by cash reserves without any leverage. And the reserve is made by cash and cash equivalents. While $BUSD is fully collateralized, its issuer, Paxos, provides a transparent process for minting and burning $BUSD tokens. In addition, $BUSD reserves are regularly attested by a trusted auditor to ensure users can access the collateral that backs $BUSD whenever needed.

Furthermore, $BUSD commits to high standards, including working with regulators to maintain a license and be fully regulated. Paxos, a partner of Binance, issues $BUSD. Paxos, as the issuer, and the $BUSD stablecoin, are regulated by the New York State Department of Financial Services (NYDFS), a leading regulator in this area. $BUSD is also green-listed by the NYDFS, making it pre-approved for custody and trading by any of the NYDFS’ virtual currency licensees.

Lastly, $BUSD offers users the highest levels of safety, protection, and security. In addition to being regulated by the NYDFS, $BUSD is subject to the New York Banking Law. That law states that if Paxos Trust becomes insolvent, it will not go through the standard bankruptcy procedures like other companies. Instead, the Superintendent of NYDFS would return assets held in custody by Paxos Trust to their rightful owners. Paxos Trust holds customer assets safely separated from corporate funds as a qualified custodian.