Binance USD (BUSD)

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You can deposit or withdraw BUSD from Bitso using the Ethereum (ERC-20) Network exclusively. Make sure you choose this network when transferring your coins.

 

What is Binance USD (BUSD)?

Binance USD is a fiat-backed stablecoin created by Binance and is operated in conjunction with Paxos. BUSD is a massively popular stablecoin, currently ranked #12 in cryptocurrency assets by market cap. The purpose of BUSD was to combine the stability of the USD with the flexibility of blockchain tokens, while also making it compatible with both Ethereum and the Binance Smart Chain. 

 

What makes it unique?

  • BUSD is an ERC-20 token that also supports BEP-2, Binance’s own token standard;

  • Backed 1:1 by USD in accounts controlled by Binance and Paxos;

  • By partnering up with Paxos, BUSD benefits from being approved and regulated by the New York Financial Services Department;

  • Being regulated by the NYFSD, BUSD is audited on a monthly basis, the results of which are public and can be viewed on the BUSD official website;

  • Neither Binance nor Paxos charge a fee for the purchase or redemption of BUSD;

  • The third largest stablecoin, behind USDT and USDC.

 

Purpose

The combination of safety, being a regulated stablecoin in a highly unregulated market, and the convenience of being compatible with both the Ethereum network and Binance chains has made BUSD a contender for a position at the top of the stablecoin market. Additionally, not charging fees has kept the cost of using BUSD low. Popularity for BUSD has exploded in 2021 largely due to many exchanges, wallets, and platforms such as Metamask, Trezor, Uniswap, and others accepting and integrating BUSD into their services. The market cap of BUSD reflects this adoption. BUSD started 2021 with a market cap of around $1B and ended the year with a staggering $18B. A comprehensive look at where you can use BUSD and how can be found here

 

Sources of knowledge


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