A new product offered by Binance will allow its BUSD stablecoin to be easily converted with other stablecoins in the crypto market.
Major crypto exchange Binance has announced a new Binance USD (BUSD) conversion function on its platform. Beginning immediately, users can now instantly convert a select number of stablecoins into the BUSD.
Binance BUSD Conversion
According to the announcement, the supported stablecoins for the new feature include Paxos Standard (PAX), USD Coin (USDC), TrueUSD (TUSD) and Tether’s USDT. For the first three, the announcement states that conversion to BUSD will be settled at 1:1. Binance will settle conversions on these first three, free of charge. USDT conversion will, however, be a little different and “will vary based on the current market price”.
The Buy and Sell Cryptocurrency page is also available to users who want to access the new conversion feature. Binance also adds that there is no conversion limit on either the conversion frequency or amount of funds converted.
The Binance BUSD Stablecoin
The BUSD was first announced back in September 2019. The stablecoin is a result of a partnership between Binance and the Paxos Trust Company. BUSD is backed 1:1 to the U.S. dollar and was initially only available on the Paxos platform. About a week after the initial announcement, BUSD made its debut listing on the Binance platform.
Speaking on the launch, Paxos Co-founder and Asia CEO Rich Teo said that the green light received from the New York State Department of Financial Services (NYDFS) showed the importance of stablecoins not just in the crypto market but globally as well. Teo also added that the offering is another way for Binance to give its customers specifically tailored products.
Paxos and Binance
Apart from the BUSD collaboration, both Binance and Paxos have worked on other projects. In November 2019, Paxos announced its Fiat Gateway product with Binance. The offering is designed to allow people to easily exchange US dollars for stablecoins. The product had however already been available to Paxos customers since May 2019.
The two companies, whether individually or together, are finding ways to spread the gospel of stablecoins. Their efforts will go a long way to promote the use of stablecoins in the crypto market. It will also push stablecoin adoption by making options popular enough on other exchange platforms.
The Future of Stablecoins
Stablecoins are the preferred options for institutions that want to go the crypto way but are circumspect about most digital assets. Today, there are several companies, including JPMorgan, that are seriously working on floating their own stablecoins. The biggest of them, however, is Libra.
Facebook announced its Libra stablecoin last year with the hopes to launch the asset soon. Today, Libra has suffered some relegation because of all the regulatory shots received. Because Facebook has had an interesting history and has lost a lot of trust, authorities prefer that the Libra does not launch.
Only time will definitively tell whether or not Facebook will be able to add its Libra to the market’s growing list of stablecoins.