BUSDPrice

(BUSD)

BUSD, also known as Binance USD, is a digital stablecoin that was launched through a strategic partnership between the global cryptocurrency exchange Binance and Paxos Trust Company. Introduced in late 2019, the token was designed to provide a digital version of the United States dollar on the blockchain, offering a way for users to hold a stable asset within the volatile cryptocurrency market. The project operates as a fiat-collateralized asset. This means that for every token in circulation, a corresponding amount of traditional currency or equivalent high-quality reserves, such as US Treasury bills, is held in custody. Paxos, a regulated financial institution based in New York, served as the primary issuer and custodian of these reserves. The project was notable for its strict adherence to regulatory standards, as it was approved and overseen by the New York State Department of Financial Services. This regulatory backing was intended to provide a high level of transparency and trust for its users. Technically, BUSD was originally issued as an ERC-20 token on the Ethereum blockchain. However, the ecosystem expanded to include wrapped versions known as Binance-Peg BUSD, which allowed the asset to be used across other networks like the BNB Chain, Polygon, and Avalanche. These wrapped versions were managed by Binance, which held the native Ethereum-based tokens as collateral to ensure the value remained consistent across different platforms. In early 2023, the project faced a significant shift following a directive from the New York State Department of Financial Services. The regulator ordered Paxos to stop minting new tokens, citing unresolved issues regarding the oversight of the relationship between Paxos and Binance. Consequently, Paxos announced it would cease the issuance of new tokens but continued to support redemptions for existing holders. Following this regulatory action, Binance began a gradual phase-out of the token across its ecosystem, encouraging users to migrate their holdings to other stablecoins. By early 2024, support for the asset had largely concluded on major platforms, marking the end of its period as a primary stablecoin in the digital asset space. While it is no longer being actively expanded, the project remains an important case study in the intersection of traditional financial regulation and decentralized technology. Learn more

--

Cryptocurrency prices are subject to high market risk and price volatility. You should invest only in projects and products you are familiar with and understand the associated risks. Carefully consider your investment experience, financial situation, investment objectives, and risk tolerance, and consult an independent financial advisor before making any investment decisions. This material should not be considered financial advice. Past performance is not a reliable indicator of future performance. The value of your investment may go down or up, and you may not recover your invested amount. You are solely responsible for your investment decisions. LBank is not responsible for any losses you may incur. For more information, please refer to our Terms of Use and Risk Warnings. Please also note that the data related to the above-mentioned cryptocurrency (such as its current real-time price) is sourced from third parties and is provided “as is” for informational purposes only, without any representation or warranty. Links to third-party websites are not under LBank’s control, and LBank is not responsible for the reliability or accuracy of such websites or their content.