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Binance listing NYDFS-approved “BUSD” stablecoin next week

Binance listing NYDFS-approved “BUSD” stablecoin next week

Binance announced that it will begin listing the NYDFS-approved BUSD. The exchange said the stablecoin, jointly launched by Paxos and Binance, will begin trading on Sep. 16, while early purchases on Paxos’ platform will start on Sep. 12.

Paxos and Binance’s stablecoin beginning trading next week

Binance, one of the largest cryptocurrency exchanges in the world, has been expanding its services and overtaking a significant part of the market. After announcing the launch of its futures trading platform, the exchange decided to take on the growing stablecoin industry.

Binance said that it will begin listing BUSD, a fully-regulated and USD denominated stablecoin. Developed in partnership with stablecoin provider Paxos, BUSD was approved and regulated by The New York State Department of Financial Services (NYDFS), meaning it is among the few digital currencies that can be sold to New York residents.

The exchange said that BUSD will be listed on its platform and available for trading against Bitcoin (BTC), Binance Coin (BNB), and XRP (XRP) from Sep. 16. Users will be able to purchase the stablecoin on Paxos’ platform starting Sep. 12.

BUSD bringing greater stability to crypto

Wei Zhou, the chief financial officer at Binance, said that the company was happy to work with a reputable company like Paxos to issue a stablecoin that would bring more stability into the crypto world.

“Launching a stablecoin approved by the New York State Department of Financial Services (NYDFS) is a strategic step for Binance to provide on-chain financial services for users across the world,” he said in the press release.

Rich Teo, the co-founder of Paxos, called BUSD a “meaningful product” that will allow Binance to take a more regulatory-compliant approach in the U.S. 

Binance has already dipped its fingers into the stablecoin industry. In July, the company’s Jersey arm launched BGBP, a stablecoin with a 1:1 peg to the British Pound (GBP). The company also listed a little-known Seattle stablecoin StableUSD ahead of other major competitors.

Binance dominating the market

After opening a fiat-to-crypto gateway at the beginning of the year, Binance has been coming up with ways to reinvest its enormous profits.

The exchange’s new stablecoin came after it dove headfirst into the world of derivatives trading. Earlier this month, Binance acquired JEX, a small derivatives platform based in Seychelles and rebranded it to Binance JEX. JEX, alongside Binance’s in-house platform, will offer users futures, options, and perpetual contracts.

In August, the exchange launched a lending platform offering users up to 15 percent annualized interest rate for BNB, USDT, and ETC-based lending instruments, with more tokens to come.

Its open blockchain project Venus, which aims to be a regulatory-compliant competitor to Facebook’s Libra, is set to take over the Asian market. The exchange closed down its operations in the United States only to open a new, U.S.-only exchange that would comply with strict laws imposed by regulators such as the CFTC and the SEC.

Binance’s native token, BNB is surging with YTD gain of 242 percent—one of the best-performing cryptocurrencies of 2019.

It’s hard to predict whether the astronomical growth Binance has shown this past year will continue into 2020. So far, the Malta-based giant shows no sign of stopping.

Posted In: , , Stablecoins

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Priyeshu Garg
Author

Priyeshu Garg

Crypto Analyst @ CryptoSlate

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends.

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