New York regulators have approved the launch of a new cryptocurrency developed by global exchange Binance. A collaborative effort between Binance and digital asset infrastructure developer Paxos, the stablecoin, Binance USD (BUSD), will be pegged to the US dollar.
According to today’s announcement, consumers will be able to buy BUSD and redeem the stablecoin 1:1 for the US dollar on the Paxos platform. Users will also be able to buy BUSD on Binance.com for trading against three initial pairs: BUSD-Bitcoin (BTC), BUSD-Binance Coin (BNB) and BUSD-XRP.
Paxos, which became the first approved and regulated company to offer crypto products and services when the NYSDFS granted it a limited-purpose trust charter in 2015, will serve as the USD custodian and issuer of BUSD.
The regulated currency arrives just as stablecoin leader Tether (USDT) explores the development of two new stablecoins in reaction to increased market pressure from two behemoths – China and Facebook – both of which have started the development of their own digital assets that are pegged to fiat currencies.
Today’s approval of BUSD from the New York State Department of Financial Services (NYDFS) also marks another milestone for Binance which has rolled out a number of expansive initiatives this year, including margin trading, new derivatives products, initial exchange offerings and additional cryptocurrency exchanges around the globe, including the upcoming trading platform Binance US in the United States.
CEO Changpeng Zhao says the Binance ecosystem’s new native stablecoin paves the way for even more offerings.
“We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD, including more use cases and utility through the power of stable digital assets.”
Paxos is well-positioned to meet the demands of regulators. The company continues to operate within established regulatory frameworks, tokenizing securities, precious metals and commodities such as the company’s own Paxos Standard token, a digital dollar launched in 2018.