Binance and Paxos will launch a USD backed token next month. New York State Department of Financial Services (NYDFS) has approved both the companies to distribute the coin. The stablecoin has been named Binance USD (BUSD).
This dollar-pegged coin will be listed on Binance exchange, and Paxos will act as custodian and issuer of BUSD. Initially, the traders will be allowed to trade the stablecoin with BNB, bitcoin, and xrp.
Rich Teo, Co-founder, and CEO of Paxos said that NYDFS’s approval of BUSD is a vital step towards long term stability in the global crypto market. He added that Paxos brand represents regulatory integrity, consumer protection, and transparency for all their partners.
Binance CEO Changpeng Zhao said that they hope to unlock more financial services for the greater blockchain ecosystem through BUSD. He also said that Paxos is leading the digital trusts space, and they are excited to work with the company to develop their native stablecoin. The exchange previously listed two stablecoins, BTCB, pegged to bitcoin, and BGBP, pegged to the British pound.