Crypto Spotlight: BUSD
You know we love a good stablecoin here at Wirex. So, we thought it was about time we introduced you to a brand-new one. Ready to get to know BUSD?
What is BUSD?
Binance USD (BUSD) is a USD-backed stablecoin issued by Binance, in partnership with Paxos. It’s approved and regulated by the New York State Department of Financial Services (NYDFS) and was launched in September 2019.
The key feature of BUSD is that one unit is equivalent to one US dollar.
Who created BUSD?
BUSD was created by the world’s largest crypto exchange, Binance, and the financial institution that custodies the coin’s reserves, Paxos.
The partnership’s aim was to develop a currency with all the benefits of blockchain technology, but the stability of the dollar.
What does it do?
So, what can you do with BUSD? It can be used as a monetary asset – not just on Binance, but anywhere in the world. Its rapid global adoption has created one of the largest networks in the crypto industry.
Not only can it be used to stabilise personal funds, it’s also commonly used as an investment tool for derivatives trading.
Every BUSD in circulation is securely backed by an equal amount of cash or cash equivalents. Paxos ensures the value of BUSD by performing regular audits to ensure the US dollar reserves held stays equal to the supply of BUSD. These audits are carried out alongside accounting firm, Withum.
What makes it unique?
BUSD is considered by many to be one of the safest stablecoins on the market, since it is subject to regular third-party audits and is strictly regulated to maintain its 1:1 BUSD to USD ratio.
And it's clearly doing something right – today, BUSD is a top ten digital asset by market capitalisation. You can buy, exchange, spend and transfer it to external wallets with Wirex – give it a go today.