Binance USD (BUSD) is a stablecoin which was created and is used by the Binance exchange platform. BUSD is pegged to the US dollar at a 1:1 ratio and was first used on the BNB Chain. BUSD is also compatible with other blockchains, such as Ethereum, and can be used for a variety of DeFi applications and value transfers between blockchains. With a market cap of around USD 18 billion, BUSD is one of the world’s largest USD-pegged stablecoins (as of June 25, 2022).
Binance USD (BUSD) is Binance’s 1:1 USD-backed stable coin (in partnership with Paxos). The New York State Department of Financial Services has approved and regulated BUSD (NYDFS). BUSD, which was launched in September 2019, aims to combine the stability of the dollar with blockchain technology. It is a digital fiat currency that is issued as an ERC-20 token and is compatible with BEP-2. Stablecoins play an important role in transactions, payments and settlement, and decentralised finance due to their price stability (DeFi). If you are still not cleared with use of BUSD, then Here are some examples of what you can do with BUSD.
1. On the blockchain, you can send BUSD anywhere in minutes at a low cost.
2. It can be traded on a variety of centralised and decentralised exchanges (DEXs). It can be deposited to earn interest.
3. Pay; use it to purchase goods and services.
4. Use it as a loan asset and collateral.
5. It can be used as cross-collateral in futures trading.
6. Keep it in a wallet or on an exchange.
Binance and Paxos have launched BUSD, a fiat-backed stablecoin. Each BUSD token is backed up in 1:1 ratio with US dollars held in reserve. For traders and investors looking to avoid the volatility of the digital asset market, BUSD offers a more stablecoin cryptocurrency alternative.
Binance USD (BUSD) is a fiat-backed stablecoin that is pegged to the US dollar. The New York Department of Financial Services has strict regulatory oversight over the Paxos-issued BUSD stablecoin and its reserves.
The USDC and BUSD are more transparent than the USDT. Moreover, in terms of exchange rate and blockchain, they are comparable to USDT. Thus, USDT is a better choice for those who prefer investing in a cryptocurrency with higher volume and liquidity, whereas USDC and BUSD are preferable if transparency is important to you.
Buying a Binance USD (BUSD) using the Binance app is very easy now. You just need to follow these steps..
1. Open a free account on the Binance website or app.
2. Select how you want to purchase the Binance USD (BUSD) asset.
3. Open a free account on the Binance website or app.
4. Binance USD (BUSD) can be stored or used in Binance.
Also Read : -
- Ethereum Explained.
- Tether Explained.
- XRP Explained.
- USD Coin Explained.
- BNB Explained.