BUSD

Binance USD was created by Binance in collaboration with Paxos Trust Company, a New York-based financial institution that provides regulatory compliance solutions for the digital asset industry. The partnership between Binance and Paxos was established in 2018 with the aim of creating a stablecoin that could be used for both trading and transactions on the Binance exchange and other platforms.

One of the key features of Binance USD is its regulatory compliance and transparency. As a regulated financial institution, Paxos is required to adhere to strict compliance standards, which ensures that each BUSD token is fully collateralized with a corresponding US dollar held in reserve. This means that BUSD has a 1:1 peg with the US dollar, and the total supply of BUSD in circulation will always be equal to the total amount of US dollars held in reserve.

To ensure the transparency and integrity of the BUSD supply, Paxos is subject to regular audits by third-party accounting firms. These audits verify that the reserves are being properly managed and that the token remains fully collateralized.

Binance USD was launched in September 2019, and has since become one of the most widely used stablecoins in the cryptocurrency market. It is available for trading on Binance and other major cryptocurrency exchanges, and can also be used for transactions and payments across a wide range of merchants and platforms.

The creation of Binance USD was driven by the need for a more stable and predictable form of digital currency that could be used for everyday transactions without the volatility associated with many cryptocurrencies. By pegging the value of the token to the US dollar, Binance USD provides a reliable and transparent alternative to traditional fiat currencies.

Overall, Binance USD has emerged as a key player in the stablecoin market, offering a reliable and compliant alternative to traditional payment methods. As the cryptocurrency market continues to evolve, BUSD is likely to play an important role in facilitating the mainstream adoption of digital assets.