The famous Binance exchange and the Paxos Trust Company have collaborated and launched the new stablecoin - BUSD supported by the US dollar.Get Wallet
What is Binance USD?
The famous Binance exchange and the Paxos Trust Company have collaborated and launched the new stablecoin - BUSD supported by the US dollar. It’s very important that the new Binance USD (BUSD) coin received support from the New York Department of Financial Services (NYDFS)
One of the key features of blockchain technology is the ability to use it for secure issue of digital tokens tied to real-world assets.
The “real financial world” hasn’t yet integrated well with the cryptocurrency economy. Therefore, support for the BUSD digital currency by such an important regulatory is significant progress.
What is a stablecoin?
Over the past two-three years, cryptocurrencies world has seen a phenomenal increase in the number of different tokens. Initial coin offerings (ICOs) have become very popular. Many companies and specialists have been engaged in the development and implementation of decentralized applications (dApp). These dAPPs require their own unique types of tokens.
For the convenience of exchanging and storing digital currencies, stablecoins have appeared. Stablecoins are digital currencies secured by physical assets. For example, they can be secured by the US dollar, world reserve currency. The most famous stablecoin is Tether USDT.
Many of cryptocurrencies have high volatility on the market. We all remember the end of 2017 when XEM and XRP grew up by 200% per day. Bitcoin (BTC) and Ethereum (ETH) "grew up" and "fell down" by 10-20% per day. Such crazy volatility can be profitable for traders but it can also bring huge losses.
The market value of stablecoins is unchanged. Their value is tied to real-world assets such as the US dollar and Euro. Stablecoins can even be tied to goods such as oil, gold, silver, etc.
Like many other digital tokens, stablecoins are decentralized by using blockchain technology. It means that they can’t be controlled by a centralized government agency.
What is Paxos Trust Company?
Paxos Trust Company has unique digital asset storage capabilities as the first regulated trust company with blockchain experience. Paxos serves as the issuer and custodian of US dollars in BUSD project. It was founded in 2012. Earlier, the company launched its own itBit cryptocurrency exchange in Singapore.
Paxos Trust Limited became the first digital company, that received the NYDFS trust chart in 2015 (as the itBit Trust Company).
They hold US dollar reserves for its own stable Paxos Standard (PAX) coin and Huobi token (HUSD). Paxos Standard was developed as an Ethereum marker, written in accordance with the ERC-20 protocol. This currency is fully secured by the US dollar.
The Paxos stablecoin was launched in 2018. After 2 months, PAX became one of the most popular and traded currencies on the Binance exchange platform.
PTL seeks to tokenize various assets, including commodities, securities, and other fiat currencies. They launched a stable coin, which is provided with real gold in 2020.
What is Binance?
Binance is a great blockchain ecosystem that aims to make the cryptocurrency world easier, more secure and more convenient!
By the volume of trading, the Binance Exchange is in the first place all over the world. Binance is the best by the quality of innovations. The exchange is very popular because it’s able to process up to 1.4 million tps and also offers incredibly small transaction fees: 0.1% per usual transaction 0.075% per transaction if you use your Binance tokens (BNB). Binance exchange encourages its users to store cryptocurrency on the exchange wallet but it’s not the most secure way to store your funds. This is a great advantage for all active traders. They get the opportunity to receive additional rewards for storing their funds. Many of stablecoins are supported by Binance. It’s one of the largest holders of Tether (USDT).
Recently, the resource opened the possibility of margin trading, allowing users to place loan orders.
The company, also launched “Binance Lending” platform, which allows traders to lend their digital assets for a certain period of time, receiving a fixed annual percentage. “Binance Landing”o allows users to generate passive income.
Binance USD (BUSD)
Binance Exchange released the stablecoin BUSD as part of its Venus project. The Venus project (not to be confused with Jacques Fresco’s ) is designed to accelerate the development and integration of stablecoins in the world’s economy.
The project has an extensive user base and works in accordance with the requirements of regulators in different countries.
BUSD intends to enter into partnership agreements with governments, corporations, technology companies, and cryptocurrencies and blockchain projects. The main goal is to create a new unique currency ecosystem that will open additional ones that will work in all countries
Binance wants to improve the existing infrastructure in order to improve the compliance control system and create a multi-level cooperation network. Binance has already issued stable coins tied to Bitcoins (BTCB) and British Pounds (BGBP). Now it’s BUSD time!
BUSD is a new stablecoin which reserves are held in the regulated financial organization Paxos, located in New York and Singapore. BUSD’s goal is to enable transfers between physical (fiat) and digital (crypto) assets. Like many other stablecoins, traders and investors can buy, sell and trade BUSD.
BUSD has already become one of the main valuable and tradable currencies on the Binance cryptocurrency exchange platform. It’s is an ERC20 token, therefore, it can be stored in any crypto wallet that supports the ERC20 standard. (Guarda Wallet or Ledger Nano S)
Binance works with multinational financial corporations to enable users to invest in credit cards and other cryptocurrencies. Traders can directly buy BUSD with a credit or debit card.
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