Complete BUSD Guide - Binance issues USD backed stable coin


So, Binance has issued a new USD-backed stablecoin approved by the New York State Department of Financial Services. In this complete BUSD guide, we try to answer most of the FAQs.

September 06, 2019, | AtoZ Markets - Binance will add another stablecoin to its cryptocurrency exchange platform, this time its native dollar-backed asset, the Binance USD (BUSD). The new stablecoin was created with the full approval of the New York State Department of Financial Services (NYDFS). The asset will be issued in partnership with the Paxos Trust Company, the producer of PAX, one of the most widely used stablecoins.

BUSD will be offered on the Paxos platform for 1:1 redemption against the US dollar. On Binance, the asset will start with markets against Bitcoin (BTC), Binance Coin (BNB), and Ripple (XRP).

Changpeng Zhao, the CEO of Binance, noted: “Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin.”

Read more: Binance Lending Platform supports major cryptos

CEX.IO
4.8/5
CEX.IO Review
Visit Site
Bybit
4.7/5
Bybit Review
Visit Site
PrimeXBT
4.5/5
PrimeXBT Review
Visit Site

Also, Paxos’ co-founder and CEO, Rich Teo stated that: “NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets. We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users.”

Trade BUSD with Binance

Binance supports major stablecoins

Binance currently supports the most widely accepted stablecoins and is also one of the biggest holders of Tether (USDT), the most widely used dollar-pegged coin. The exchange has already issued a British pound-backed stablecoin to work on its decentralized exchange, Binance DEX.

Due to the high trading volumes on Binance, stablecoins have increased their turnover in total. Moreover, high demand led to each PAX coin turning over 1.3 times in a 24-hour period. TrueUSD (TUSD) moves 1.69 times each day, meaning the coins’ entire supply might grow to meet demand.

Smaller stablecoins backed by US dollars are often used as a fiat off-ramp for USDT, which is still not directly redeemable. Currently, redemptions have lowered the supply of Gemini USD (GUSD) down to around 9 million coins. Other stablecoins have grown their supply more significantly, with USDC carrying more than 450 million coins.

What is BUSD?

If you are wondering what is BUSD, it is a stable coin pegged to USD that has received approval from the New York State Department of Financial Services (NYDFS).

BUSD is very similar to many other stable coins such as USDt, USDc, tUSD and many more.

What is the difference between BUSD and USDt?

While BUSD and USDt are very similar to each other from the purpose perspective there are many distinct differences for these two stable coins.

BUSD is only the latest stablecoin whose reserves are being held by Paxos, a New York and Singapore based regulated financial institution building infrastructure to enable movement between physical and digital assets. The BUSD meanwhile is the first stable coin to be approved by the NYDFS.

Meanwhile, USDt also known as Tether is 100% backed by tether reserves.

How to buy BUSD?

Like many other stable coins, traders and investors will be able to buy, sell and trade BUSD via multiple channels.

Initially, you can buy BUSD cryptocurrency via the Paxos platform for direct purchase and redemption 1:1 for USD. As the name suggests Binance USD backed cryptocurrency will also be listed on Binance.com trading against BTC, BNB and XRP coins.

Traders can look for pairs such as:

  • BUSD/BTC
  • BNB/BUSD
  • XRP/BUSD

It is expected that BUSD will be one of the main base currencies on the Binance cryptocurrency exchange platform.

Buy BUSD Now

Who supports BUSD?

Although, this USD backed stable cryptocurrency is new to the market, it is expected to have multiple supporters. Initially, as the name also suggests Binance is the main BUSD supporter, which is one of the world’s largest cryptocurrency exchanges according to trading volume.

Additionally, among the supporters' traders can find PAXOS Trust Company and Etherscan. The digital asset is also approved by the NYDFS.

Is BUSD an ERC20 token or Binance Chain token?

Although BUSD is a Binance backed stable coin, it is not a Binance Chain based cryptocurrency. This is, in fact, a strategic move by Binance in order to be able to push the new asset into other crypto exchanges without limiting them to Binance Chain only.

Since almost all the exchanges are familiar with Solidit and the ERC20 protocols, Binance strategically has selected ERC20 protocol for BUSD, thus BUSD is an ERC20 token.

Can I transfer BUSD outside Binance?

  • Yes, it is possible to transfer BUSD outside of Binance.

Nano Ledger reseller

Since the BUSD token is an ERC20 token you can transfer the coin to any other ERC20 supported wallet. You can use myetherwallet as a free wallet or purchase one of the hardware wallets such as Nano Ledger to store your BUSD tokens.

Can you buy BUSD with a credit card?

Binance has partnered with Credit Card processors to enable traders to invest in Bitcoin and other cryptocurrencies with credit cards. Thus, traders can directly buy BUSD using a credit card on Bincance cryptocurrency exchange as well.

Buy  BUSD Now

List of coins like BUSD

There are many other stable coins in the market. Some of these instruments are backed by fiat and some are backed by commodities.

BUSD is a fiat-backed token which is similar to the following tokens

  • TrueUSD (TUSD)
  • USD Tether (USDT)
  • USD Coin (USDC)
  • Paxos Standard (PAX)
  • Centre
  • Gemini Dollar (GUSD)

We have tried to make this article as explisive as possible. However, since Binance USD backed token is new to the market, the content of this article may be subject to changes. This article was last updated on the 6th of September 2019, at 11:48 am GMT.

Should you start trading BUSD on your own at all?

Before you start Forex trading with the BUSD, you'll want to read this.

Our in-house trading expert Dr Yury Safronau, PhD in Economic Sciences, gives you daily his best forex, metals, and cryptocurrencies to buy and sell signals right now.

His trading strategies which are based on non-linear dynamic models have achieved more than 65 000 pips of profits since 2015. And right now there are some very strong buy and sell signals across several markets you don't want to miss.

Want to see which ones?

  1. Kristian Whitney says:

    Have you ever considered about adding a little bit more than just your
    articles? I mean, what you say is valuable and all. However imagine
    if you added some great pictures or video clips to give your
    posts more, "pop"! Your content is excellent but with
    images and video clips, this site could certainly be
    one of the best in its niche. Good blog!

    Reply
  2. Bertha Huggins says:

    Great site you have here but I was wanting to know if you knew
    of any message boards that cover the same topics discussed here?
    I'd really love to be a part of community where
    I can get opinions from other experienced people that share
    the same interest. If you have any suggestions,
    please let me know. Cheers!

    Reply
  3. Norma Lumholtz says:

    Hey I am so happy I found your blog page, I really found you by accident, while I was searching
    on Google for something else, Regardless I am here now and would just like
    to say kudos for a incredible post and a all
    round interesting blog (I also love the theme/design), I don’t have time
    to look over it all at the moment but I have book-marked it and also
    included your RSS feeds, so when I have time I will be
    back to read a great deal more, Please do keep up the excellent work.

    Reply
  4. Angelita Bruxner says:

    It's an awesome paragraph designed for all the online people; they will
    take advantage from it I am sure.

    Reply
  5. Cecelia Pontiff says:

    Wow, amazing weblog layout! How lengthy have you ever been running a blog for?

    you made blogging look easy. The overall glance of your site is
    great, as well as the content material!

    Reply
  6. Merry Lefebvre says:

    Hello Dear, are you truly visiting this web page regularly, if
    so after that you will definitely take good experience.

    Reply
  7. blog job board says:

    This opens up paid blogging work to writers about the world that want to monetize their relevant capabilities.

    Reply
  8. 업소알바 says:

    Hi all, here every one is sharing these knowledge, therefore it's good to read this website, and
    I used to pay a quick visit this webpage daily.

    Reply
  9. 여성알바사이트 says:

    I think the admin of this website is actually working hard
    in favor of his site, since here every information is quality based material.

    Reply
  10. 업소알바 says:

    Wow that was odd. I just wrote an extremely long comment but after I clicked submit my comment didn't show
    up. Grrrr... well I'm not writing all that over again. Anyways,
    just wanted to say wonderful blog!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *