Leading cryptocurrency exchange Binance announced today a new partnership with Paxos – a regulated financial institution digitizing and mobilizing assets. The collaboration aims to see the launch of a new USD-denominated stablecoin called Binance USD (BUSD). Per the announcement, BUSD has already received the approval from the New York State Department of Financial Services (NYDFS) and it will be available for trading later this month.
The announcement comes days before the expected launch of Binance US – a subsidiary focused on serving US-based traders.
Binance To Launch USD-Backed Stablecoin (BUSD)
Binance USD (BUSD), the name of the USD-denominated stablecoin, is the next venture coming from Binance and the Paxos Trust Company.
Paxos’s position as the first regulated Trust company with blockchain expertise allows it to custody and mobilize assets digitally, thus serving as the USD issuer and custodian of Binance USD. Binance USD (BUSD) will be available for direct purchase on the Paxos platform later this month as the peg will be 1:1 to the U.S. dollar. Once it’s integrated on Binance, users will be able to trade it against BNB, BTC, and XRP.
Commenting on the matter was Changpeng Zhao, the CEO of Binance, who noted:
Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin.
Also weighing in on the matter was Paxos’ Co-Founder and CEO Asia, Rich Teo, who said:
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.
Binance Is All Over The Place
The news follows an earlier announcement that Binance will be launching a subsidiary called Binance US. It’s intended to serve US-based traders.
The second half of 2019 appears to be even more impactful for the exchange. In July, Binance opened the doors for margin trading, allowing users to place leveraged orders.
The leading cryptocurrency exchange also revealed its intentions to create Venus – a “regional version” of Facebook’s Libra as a means of opposing the already established financial hegemony.
Binance launched a platform allowing traders to lend their BNB, ETC, and USDT for a specific time period, receiving a certain annualized interest rate. The platform is dubbed Binance Lending and it allows users to earn a potential passive income.
And if all of that isn’t enough, earlier this month, the company acquired JEX – a crypto asset derivatives trading platform. The new venture called Binance JEX will deliver cryptocurrency derivatives including options and futures contracts.