Binance-Peg BUSD

What is Binance USD (BUSD)?

BUSD is a stablecoin pegged 1:1 to the U.S. dollar, issued by Paxos in collaboration with Binance. It is a regulated fiat-backed stablecoin that provides a stable store of value and facilitates transactions within the cryptocurrency ecosystem.

What Problem Does Binance USD (BUSD) Solve?

BUSD addresses:

• Stability: Offers a stable digital currency in the extremely volatile crypto market.
• Trust and Compliance: Provides a regulated, fully audited stablecoin.
• Ease of Transactions: Allows near-instant, low-cost transactions across the Binance ecosystem and beyond.

Why Does the Crypto Market Need Binance USD (BUSD)?

The crypto market benefits from BUSD by:

• Reducing Volatility: BUSD provides a stable platform for traders and investors to park their funds.
• Facilitating DeFi and Trade: It is widely used in DeFi, trading pairs, and as collateral.
• Regulatory Assurance: Paxos issues BUSD under the oversight of the New York State Department of Financial Services (NYDFS), providing transparency and regulatory assurances.

History & Achievements

BUSD was launched in September 2019 and quickly gained significant market capitalization, becoming one of the largest stablecoins. Adoption has been rapid, particularly within the Binance ecosystem, and it is now integrated into several decentralized finance platforms and trading pairs.

Who Created Binance USD (BUSD)?

BUSD was created through a partnership between Binance, one of the largest cryptocurrency exchanges in the world, and Paxos, a regulated financial institution specializing in blockchain technology.

What Technology Does Binance USD (BUSD) Use and How Does it Work?

BUSD uses:

• Ethereum Blockchain: BUSD is an ERC-20 token on the Ethereum platform, making it interoperable with leading decentralized applications, wallets, and other infrastructure.
• Binance Smart Chain (BSC): BUSD is also a BEP-20 Token on Binance Smart Chain, enabling quicker and cheaper transactions.
• Pegging Mechanism: Paxos holds an equivalent value of BUSD in U.S. dollar reserves at all times to maintain its 1:1 peg.

What Affects Binance USD (BUSD) Price?

Factors influencing BUSD's price:

• Market Stability: BUSD is designed to be pegged at 1:1 with the U.S. dollar, and its price generally holds around $1.
• Regulatory Changes: Regulatory changes in cryptocurrencies may affect its operations.
• Trust in Issuer: Trust in Paxos and its regulatory framework can influence the perceived stability of BUSD.

How Many Binance USD (BUSD) Tokens Are in Circulation?

There are approximately 367,662,861 BUSD tokens in circulation.

What is the Maximum Supply of Binance USD (BUSD)?

BUSD does not have a fixed maximum supply; it is issued according to demand and backed by the U.S. dollar reserves held by Paxos.

What is Binance USD (BUSD) Utility?

BUSD tokens are used for:

• Trading: Used as a stable trading pair on numerous exchanges.
• DeFi Applications: Widely used in lending, borrowing, and yield farming on decentralized finance platforms.
• Payments: Facilitates transactions and payments with the stability of the U.S. dollar.

Tokenomics of Binance USD (BUSD)

BUSD’s tokenomics include:

• Fully Collateralized: Each BUSD is fully collateralized with a U.S. dollar held in reserve by Paxos on a 1:1 basis.
• Regulatory Compliance: Issued under NYDFS regulation, ensuring transparency and trust.
• Flexible Supply: BUSD's supply is elastic and adjusts according to demand, which modifies the reserves accordingly.

What is the All-Time High and All-Time Low for Binance USD (BUSD)?

• All-Time High: $1.06 on October 23, 2023
• All-Time Low: $0.9543 on November 21, 2023

Where to Buy Binance USD (BUSD)?

BUSD tokens can be purchased on the following major cryptocurrency exchanges:

• Binance
• Coinbase
• Kraken
• Gemini
• Huobi

Who Invested in Binance USD (BUSD) at an Early Stage?

BUSD is a stablecoin issued by Paxos and Binance, so it does not have traditional early-stage investors. Its growth depends on adoption within the Binance ecosystem and broader crypto markets.

What Are the Revenue Streams of Binance USD (BUSD)?

BUSD’s revenue streams include:

• Transaction Fees: Paxos may earn revenue from transactions conducted in BUSD on its platform.
• Custody Services: Paxos earns revenue from custodianship and management of the U.S. dollar reserves backing BUSD.
• Partnerships and Collaborations: Revenue is derived from collaborations with various exchanges and DeFi protocols that utilize BUSD.