Leading cryptocurrency exchange Binance announced in a press release today that it has received approval from the New York State Department of Financial Services (NYDFS) to launch a new stablecoin dubbed Binance USD (BUSD)
Following the approval, Binance is set to unveil the new BUSD stablecoin later this month in partnership with asset digitization startup, Paxos, while listing on both exchange’s platform will follow.
In revealing further details, the announcement read,
“BUSD will be available on the Paxos platform for direct purchase and redemption 1:1 for U.S. dollars and available on Binance.com for trading initially against BTC, BNB, and XRP. Paxos will serve as the USD custodian and issuer of BUSD.”
Meanwhile, the new stablecoin being launched by Binance is the second fiat currency backed token that the exchange has launched in recent times. Earlier this year, Binance launched a trial for a GPB-pegged stablecoin and subsequently unveiled another stablecoin version backed by Bitcoin.
However, the latest regulator approved USD-backed token finally puts the exchange in fine position to own a stablecoin that could rival Tether (USDT) as the industry’s most used dollar-backed cryptocurrency.
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