Binance, one of the largest crypto exchange in terms of adjusted trade volume, on Thursday has announced its partnership with Paxos to launch a USD-pegged stablecoin.
Dubbed Binance USD (BUSD), the companies received permission from the New York State Department of Financial Services (NYDFS) for an uninterrupted circulation of the currency across all the states of the United States.
Commenting on the development, Rich Teo, co-founder of Paxos and chief executive of its Asian wing, said: “NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets. 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.”
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Another stablecoin to challenge the dominance of USDT
The announcement detailed that both companies will provide access to the digital currency to the public from next month. Paxos will sell the stablecoin directly on its platform against a redemption ratio of 1:1 against USD, while Binance will list the digital currency on its exchange platform and traders initially will have the option to trade it against Bitcoin, Binance Coin, and XRP.
“Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin,” Chagpeng “CZ” Zhao, founder and chief executive of Binance, 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.”
BUSD is not the first stablecoin initiative of the crypto exchange as it is already testing a British pound-pegged digital currency on its proprietary blockchain. Zhao later confirmed that the project is still in a nascent stage.
Meanwhile, Binance is all set to launch its futures trading platform and recently released two testnet of the upcoming platform to receive user feedback.