Cryptocurrency exchange Binance has partnered with Paxos Trust Company to introduce a US currency denominated stablecoin dubbed Binance USD (BUSD).

The stablecoin already secured the green light from the New York State Department of Financial Services.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Paxos co-founder and CEO Asia Rich Teo said: “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 customised for their users.”

BUSD is expected to be available on the Paxos platform later this month. Users can purchase and redeem the cryptocurrency at a 1:1 ratio against US Dollars (USD/$).

Paxos, a financial institution that digitises and mobilises assets, will also serve as the USD custodian and issuer of the new stablecoin.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Initially, the stablecoin will be available on the Binance website for trading against BTC, BNB and XRP cryptocurrencies.

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

“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.”

The latest move comes shortly after Binance’s acquisition of crypto-asset trading platform JEX. JEX focuses on spot and derivatives trading services.