What is Binance USD? Binance USD (BUSD) is a widely used stablecoin on Binance, the world’s largest cryptocurrency exchange. In this article, you can access answers to frequently asked questions such as what is Binance USD, what it offers, and what is BUSD for. As Kriptokoin.com, we have prepared it for our curious readers. Let’s examine the project together.
What is Binance USD?
Binance USD is a stablecoin project with a 1:1 index to the US dollar. The project aims to create a stablecoin that offers users accessibility, speed and flexibility. In this context, BUSD, launched by the world’s largest cryptocurrency exchange Binance, is used to perform transactions within the stock market. The asset is regulated by the New York State Department of Financial Services.
One of the largest stablecoins currently, BUSD has a centralized structure like many stablecoins with large trading volumes. The token is directly linked to the Paxos reserve, which refers to certain US banks. The dollar corresponding to each supply of stable coin is held in the FDIC-insured Paxos reserve. Users can buy stable coin from exchanges where the token is listed, especially Binance. Besides, it is possible to print new stable coins. For this, it is necessary to deposit US dollars in the Paxos reserve. Cryptocurrency indexed to the dollar offers investors the opportunity to trade in the stock market by being protected from the risk factor.
What is BUSD used for?
It is possible for users to trade inside and outside the exchange using Binance USD stablecoin. Token holders can transfer their digital dollars to different platforms with low transaction fees. They can trade the stablecoin on centralized and decentralized exchanges outside of Binance. In addition, token holders can earn passive income on interest by lending their assets.
Finally, users holding stablecoins can use their tokens as a payment method for services and products or as a collateral asset. At the time of writing, the stablecoin had a market cap of around $17.4 billion and was the 13th largest cryptocurrency. In addition, there were 17.47 billion stablecoins in circulation.
How to buy BUSD? Users who want to buy Binance USD for
Dollars can become a member of the exchanges where the stable coin is listed. These exchanges include Binance, Bybit, CoinTiger, and Bitget. Users who fully subscribe to one of these exchanges and deposit a fiat currency such as dollars or lira in their wallets can buy BUSD.
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