Binance USD (BUSD) is a stablecoin denominated in US dollars and launched by Binance and Paxos in early September 2019. The Binance company was founded in China. The token is fully open and officially approved by the New York State Department of Financial Services. Paxos is the issuer of BUSD, responsible for the fiat provision of the stablecoin. These funds are kept in bank accounts and are insured by the Federal Deposit Insurance Corporation in the USA. This information is available on the website of the Binance Wikipedia page.
Binance USD reviews presented on the official website contain information that the Binance USD stablecoin is a digital currency, the value of which is backed by the US dollar. Due to this, the BUSD token eliminates the price fluctuation that is inherent in ordinary cryptocurrencies. Therefore, traders and investors use it to save capital when the prices of cryptocurrencies fall. Binance token BUSD is also a means of lending, investing and trade financing on the Binance platform.
The overview says that the Binance USD stablecoin is built on a smart contract that is responsible for securing the stablecoin. The contract is regulated by Paxos Trust Company, which has passed the procedure of attestation and verification of accounts. These accounts hold funds that ensure the issue of BUSD, and the smart contract regulates the price of the stablecoin. This contract is built on the ERC-20 protocol of the Ethereum blockchain.
How to buy on Binance
There are three ways to purchase a stable digital currency BUSD:
- Exchange for fiat money on the Binance platform or on the Paxos website. The Exchange accepts 70 national currencies for payment, including Russian rubles. The Paxos service accepts only US dollars or Pax stablecoins. Registration and identity verification are required on the sites. You can transfer money from a bank card. Exchange clients can pre-deposit money to a fiat deposit, and then buy a BUSD crypt or use the services of Mercuryo, Simplex or BANXA services. In addition, Binance has a P2P section where payment via QIWI is possible.
- Use the service of instant conversion of crypto assets on the Binance platform or in the interface of the Trust Wallet wallet. 30 virtual coins are supported, including BTC, ETH, Doge, Pax, Usdt. In this case, the exchange does not require KYC, and through Trust Wallet, you can make an exchange absolutely confidentially.
- Exchange for one of 120 cryptocurrencies on the Binance spot platform. Create an account, transfer virtual coins to an exchange deposit and start trading. The BUSD stablecoin is in the FIAT column. Trading with leverage is supported, the order creator (maker) does not pay a trade fee.
Binance info reports that in addition to Binance, the digital BUSD token is traded on several other platforms. Among them it is worth noting Poloniex and P2PB2B.