Binance Joins Hands With Paxos To Issue A USD-Backed Stablecoin
Binance, dubbed as the largest crypto exchange by adjusted volume, is going to issue a stablecoin project – the Binance USD (BUSD) with the help of Paxos. The two companies join forces in creating a USD-backed stablecoin, tradeable for Bitcoin, Binance’s BNB coin and Ripple.
The two companies got approval to issue the token in the United States by the New York State Department of Financial Services (NYDFS).
Rich Teo, CEO, and co-founder of Paxos stated his positive attitude for the new token, saying that the regulatory approval is a giant leap towards granting stability in the crypto sector. “The cooperation with Binance will utilize our stablecoin-as-a-service approach. This way we are granting regulatory approval, transparency and enhanced security, which is a symbol for Paxos”, Teo added.
The joint venture also means delegated responsibilities – Binance will list the BUSD token on its exchange, while Paxos will distribute and back it 1:1 against the United States Dollar.
For now, Binance would allow exchanging of the new stablecoin for BTC, BNB, and XRP, with possible additions to the list in the near future.
Binance is quickly transforming itself into a crypto hegemon, with new products and services being added every week. The latest products mean new businesses and workforce.