By
Chimamanda U. Martha
April 18th, 2024
BUSD will be available for direct purchase and redemption 1:1 for U.S. dollars on the Paxos platform and for trading against Bitcoin (BTC), Binance Coin (BNB) and Ripple’s XRP on Binance.com.
Paxos Trust Company, a regulated financial institution that digitizes and mobilizes assets, and global cryptocurrency exchange and blockchain ecosystem, Binance, announced their partnership regarding the launch a USD-denominated stablecoin, Binance USD (BUSD), which has already received approval from the New York State Department of Financial Services (NYDFS).
Rich Teo, Paxos Co-Founder and CEO Asia, explained that NYDFS’s approval of BUSD presents a crucial step regarding the long term stability in global crypto markets. He said:
“We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users. The Paxos brand symbolizes regulatory integrity, consumer protection and transparency for all of our partners.”
BUSD will be available on the Paxos platform for direct purchase and redemption 1:1 for U.S. dollars and later in the month will be available on Binance.com for trading initially against BTC, BNB, and XRP. Paxos will also act as the USD custodian and issuer of BUSD. CZ (Changpeng Zhao), Binance CEO 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.”
Additional details regarding this partnership will be revealed on-stage at Invest: Asia 2019 where Paxos’ Rich Teo and Binance’s CFO Wei Zhou will discuss it live on September 12.
Binance Spreading Its Focus on Stablecoins
However, this is not the first partnership with Paxos of this kind. Back in July, startup called Stable Universal, backed by Huobi capital, launched a dollar-pegged stablecoin dubbed HUSD in an alliance with Paxos. The stablecoin is listed on Huobi Global and it will be listed on other exchanges, trading desks, and wallets as well pretty soon.
Binance has been increasingly spreading its focus on the stablecoins. Also in July it listed BGBP stablecoin, pegged 1:1 to the British pound, but built on the Binance Chain blockchain network. Binance then confirmed they plan to launch a collection of stablecoins pegged to different fiat currencies.
Wei Zhou, CFO of Binance, then explained that there has been an overwhelming demand in the market and Binance community for more stablecoin diversification, including a GBP-pegged stablecoin, and listing BGBP is in response to it.
“Use cases and the utility of stablecoins have increased as well as BNB, which has tripled since the beginning of the year and continuing to grow rapidly with the advancement of Binance Chain.”
Also, we already reported on exchange’s own cryptocurrency they are developing. Dubbed Venus, the cryptocurrency will be similar to Facebook’s upcoming Libra.
From Binance they then said they are looking to create new alliances and partnerships with governments, corporations, technology companies, and crypto companies and projects involved in the larger blockchain ecosystem. The goal is to authorize developed and developing countries for stimulating new currencies.
They wrote in their blog:
“With its existing global blockchain ecosystem, Binance has already reserved its public chain technology and cross-border payment system for secure operations of new stablecoins.”
Be it as it may, Venus should not face regulatory block, as the company explained that Binance has a regulatory network around the world and that it plans to establish a global, multi-dimensional customer network and compliance system.