Coindesk reports that major crypto exchange Binance is launching a dollar-backed stablecoin in the U.S
Moreover, the new Binance USD (BUSD) has received the blessing of the New York Department of Financial Services (NYDFS). Binance announced on 5th September that NYDFS had approved the new stablecoin, which Binance is launching in partnership with the Paxos Trust Company. This announcement comes at the same time as Paxos announced its PaxGold coin, also approved by the NYDFS.
The Binance stablecoin will be backed by U.S. dollars on a 1:1 ratio, according to a press release. The offering joins the Paxos Standard and the Gemini Dollar as an NYDFS-approved stablecoin.
In a statement, Binance CEO Changpeng Zhao (“CZ”) 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.”
Binance USD is only the latest stablecoin whose reserves are being held by Paxos. According to the company, Paxos will act as both the custodian and the issuer for BUSD, and will regularly audit the dollar holdings.
Paxos co-founder Rich Teo said in a statement that BUSD would be “a vital step towards long term stability in global crypto markets.” Binance’s CZ added, “Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin.”