This works by locking BUSD tokens on the Ethereum blockchain in a smart contract and issuing an equal number of BUSD tokens on the Binance Chain.īoth the Ethereum blockchain and the Binance Chain are immensely decentralized and maintain top-tier security standards to ensure fund safety. Rather than creating an organic stablecoin framework on the Binance Chain, BUSD exists as a BEP2 token ‘wrapped’ to the ERC-20 BUSD tokens on the Ethereum blockchain. This enables the stablecoin to leverage the security of the Ethereum network by having its abundantly decentralized network of validators worldwide verify and record BUSD transactions on the Ethereum public ledger.īUSD also exists on the Binance Chain. You can find more details about Binance USD on its official website and on the block explorer.BUSD is natively an ERC-20 token living on the Ethereum blockchain. The current circulating supply of Binance USD is 16.15 Billions tokens, and the maximum supply of Binance USD is 16.15 Billions.īinance USD’s 24 hour trading volume is $ 9.19 Billions.īinance USD's current share of the entire cryptocurrency market is 1.52%, with a market capitalization of $ 16.14 Billions. Available DEX’s and CEX’s can be found here.īinance USD's current price is $ 1.00, it has dropped -0.05% over the past 24 hours.īinance USD's All Time High (ATH) of $ 1.09 was reached on, and is currently -7.94% down.
Where can you buy BUSD?īUSD is available for purchase through Binance’s exchange or fiat gateway services or Paxos minting service. Prices may differ from AMM to AMM, thus arbitrage traders can make use of its wide availability and quickly swap between exchanges.
Since it is a popular stablecoin and is found on many automated market makers on BSC, liquidity pools may provide opportunities for arbitrage traders. Furthermore, by using BUSD and its compatible exchanges, money can be sent quickly around the globe.īUSD can also be used for arbitrage. Crypto users can quickly and conveniently turn their holdings into stable assets whilst remaining on the blockchain and therefore can avoid price fluctuations in crypto markets. Binance USD is easy to obtain through Binance itself or Paxos.īUSD means users can lock in gains without needing to convert to fiat. What can Binance USD be used for?īUSD offers three key attributes: accessibility, flexibility, and speed. This can be done via the Binance exchange, for withdrawals, or Binance and other bridges. Holders can swap tokens between the blockchains depending on their needs. These versions are pegged to BUSD’s value. There are also wrapped, or bridged, versions of BUSD on other chains, like Solana or Polygon, where it is not a native token. The token itself exists on three different blockchains: Ethereum, Binance Smart Chain (BSC), and Binance Chain. This increase in demand will naturally raise the price and restore the 1:1 peg. In cases where BUSD price moves lower than $1, arbitrageurs purchase large quantities of the stablecoin and then convert it back into USD through cashing it in via Paxos. To keep the peg stable, Paxos burns BUSD tokens sent to them in exchange for the fiat currency, or it will mint new tokens for users in exchange for depositing USD, or PAX, on the Paxos platform. Paxos releases regular audits, demonstrating its USD reserves match the supply of BUSD 1:1. In BUSD’s case, Paxos holds equal reserves of USD which are exchangeable for BUSD. What are BUSD key features and how does it work?īUSD is part of a category of fiat-backed stablecoins, rather than the alternative crypto-backed stablecoins that use crypto assets for their reserves, for example, DAI. Paxos is the USD custodian and issuer of BUSD. It is approved by the New York State Department of Financial Services (NYDFS) and was launched in partnership with Paxos and Binance in 2019. Binance USD (BUSD) is a fiat-backed stablecoin that acts as a digital version of the U.S.
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