Binance Launches a Stablecoin Backed by the US Dollar

The latest announcement from Binance is one that brings joy to the hearts of cryptocurrency traders. Of recent, Binance which is the world’s largest cryptocurrency exchange by trading volume announced the launch of a stablecoin which is dollar-backed by the United States of America. This green light given to Binance to move ahead comes from the New York Department of Financial Services (NYDFS). This announcement was made on Thursday 5 September 2019 by the Binance’s PR team. It was from their speech that we learned that NYDFS has approved the new offering which is believed to revolutionize the digital financial world.

As per the press release, Binance’s stable coin will be backed by the U.S. dollar on a 1:1 ratio. This is to say that Binance’s stable coin joins the ranks as yet another NYDFS- approved stablecoin along with the Paxos Standard and the Winklevoss twins Gemini Dollar. The good news is that once the Binance stable coin will be completely launched, verified Paxos customers from around the world will be able to purchase BUSD tokens through the company’s wallet by either using PAX or U.S. Dollars. Note that PAX is the company’s native dollar which facilitates financial transactions on the platform. In addition to this, Binance customers will be able to trade BUSD coins for Bitcoin, Ripple (XRP) or Binance Coin (BNB).

Binance exchange previously announced its plans of issuing stable coins globally as part of its Venus initiative. As of the time of writing, the crypto exchange has already launched stablecoins which are pegged to the British Pound (BGBP) as well as Bitcoin (BTCB). Changpeng Zhao, CEO of Binance, in a statement said 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.

Leave a Reply

Your email address will not be published. Required fields are marked *