What is Binance USD (BUSD)?
Binance USD (BUSD), launched in September 2019, is a stablecoin pegged to the US Dollar. Developed by Binance in partnership with Paxos, BUSD aims to marry the flexibility of cryptocurrencies with the stability of the US dollar. As a regulated stablecoin, it is approved by the New York State Department of Financial Services (NYDFS), ensuring compliance with various regulatory standards.
BUSD is primarily used as a medium of exchange and a store of value, offering traders and crypto users a stable and secure way to engage in digital transactions. Its 1:1 peg to the US dollar ensures minimal volatility, making it an ideal asset for trading, settlement, and risk hedging in the cryptocurrency market. Moreover, BUSD plays a significant role in the Binance ecosystem, facilitating trading and financial activities on the platform. It also contributes to the broader DeFi landscape, enabling decentralized applications to operate with a stable and reliable form of digital money.