Editorial

What You Need to Know About Binance USD

Stablecoins are an essential pillar of the crypto ecosystem. They allow users to easily get in and out of the market, without having to go through costly crypto-to-fiat conversions.

Binance USD (BUSD) is one of the top stablecoins currently on the market that is pegged to the US Dollar, coming only behind USDT and USDC in market cap. This article will provide you with the basics behind BUSD and explain how it works. Moreover, it will give you some expert insight into its stability in the future by relying on some reputable sources around the internet.

What Is Binance USD And How Does It Work?

Binance USD is a stablecoin issued by the Binance Exchange, in collaboration with the Paxos Standard. Paxos is a regulated blockchain infrastructure platform that offers custodianship services for its partners. With a global presence in New York, Singapore, and London, the company is one of the few truly regulated stablecoin issuers in the world.

This allows BUSD to be fully backed by genuine assets, either USD or US Treasury bills. This ensures that the BUSD stablecoin will always remain pegged to the dollar. Consequently, you will always be able to get an accurate valuation of your crypto assets when compared to BUSD, such as BUSD to ETH.

Furthermore, the supply is frequently audited and compared to real reserves. This helps increase the trust in this stablecoin. Another bonus is the regulation of the currency by the New York State Department of Financial Services. It ensures all users are protected.

Finally, it’s worth noting that users will always be able to recover 1:1 BUSD for USD (or PAX) on the platform itself. This ensures that the stablecoin conserves its peg even in an event of a bank run.

Use Cases Inside and Outside the Ecosystem

BUSD is the primary stablecoin on Binance Exchange, as the company favors pairs using this token instead of its competitors. So, when the exchange lists a new cryptocurrency, BUSD will usually be the first stablecoin to be interchangeable with it.

Consequently, having BUSD in your portfolio can be a great opportunity to purchase tokens as they are listed and benefit from the initial price increase. The famous “Binance listing price pump” is immediately within grasp, instead of waiting for other stablecoin pairs to come live.

Moreover, BUSD can be used within the Binance Pay app to pay for goods and services around the internet. It allows users that don’t follow the volatility of the BNB token to be able to securely use cryptocurrencies as a means of payment. Some of the most popular products purchased with BUSD are vacation destinations through the Travala website.

Binance’s partnership with Travala allows direct reimbursement in BUSD, which makes it a popular choice to pay for a vacation in crypto.

BUSD’s Rise to Popularity

The popularity of the BUSD stablecoin has come in pair with the popularity of the Binance exchange. However, since the release of the BNB smart chain in 2020, more and more people have started using it as their go-to stablecoin. The reason are the fast and cheap transactions BEP-20 tokens provide.

Moreover, the Binance exchange has recently made a move to increase the adoption of the BUSD as a trading instrument. To achieve this, the company announced that it will remove spot trading pairs using USDC, PAX, and TUSD and replace them with BUSD. While users will still be able to withdraw in these other cryptocurrencies, they will be forced to use BUSD for trading.

Consequently, the BUSD adoption has been reaching new heights, as the token has reached a $20 billion market cap and a spot in the top 10 list of cryptos.

How Can You Get BUSD?

Getting BUSD is incredibly streamlined if you use an anonymous exchange like Godex.io. You can easily swap more than 300 cryptocurrencies for BUSD, completely anonymously and without KYC or trading limits.

It’s certainly one of the best ways to exchange other stablecoins into BUSD to be able to access Binance spot trading.

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