Crypto Exchange Binance to Launch an NYDFS Approved Stablecoin
- The Binance USD (BUSD) will be launched in partnership with the Paxos Trust Company.
- When launched, the BUSD will be available for trade on Binance against BTC, BNB and XRP.
The largest cryptocurrency exchange by trading volume, Binance, is launching its own dollar-backed stablecoin in partnership with digital asset trust company Paxos, the company announced on 5 September.
The new stablecoin, called Binance USD (BUSD), has already received approval from the New York State Department of Financial Services (NYDFS), and will be backed by the U.S. dollar on a 1:1 ratio. Binance is launching the BUSD in partnership with the Paxos Trust Company, which will serve as the USD custodian and issuer of the stablecoin. Paxos Co-Founder and CEO Asia, Rich Teo, said in a statement:
“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.”
At its launch later this month, the stablecoin will be available for purchase and redemption for U.S. dollars, by verified Paxos customers on the Paxos platform. The BUSD will also be available for trade on Binance against Bitcoin (BTC), Binance Coin (BNB) and Ripple (XRP). Binance’s CEO, Changpeng Zhao (CZ), said in a statement:
“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.”
The Paxos Trust Company, which was the first cryptocurrency firm to receive a trust charter from the NYDFS in 2015, is already holding the reserves for several stablecoins, not only the Binance USD. The qualified custodian is already holding the reserves of Huobi’s HUSD token, and its own stablecoin, the Paxos Standard.
Further details around the new partnership will be presented on stage during this year’s Invest: Asia event on 12 September. The partnership will be discussed by Paxos’ Rich Teo and Binance’s CFO Wei Zhou.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.