Binance receives NYDFS approval for new USD-backed stablecoin

Binance’s new stablecoin, BUSD, has been approved by the New York Department of Financial Services (NYDFS).

The green light has come little more than two weeks after Binance announced their stablecoin project on August 12th.

Partnership with Paxos

BUSD was launched in partnership with the already-established Paxos Trust Company, who already has their own stable coin, Paxos Standard Token (PAX).

As with most stablecoins pegged to the US dollar, BUSD will be backed 1:1 with US dollars, which will be held in reserve by Paxos.

Once launched, traders will be able to purchase BUSD using USD or PAX via Paxos, as well as trade it on Binance’s own exchange.

Paxos will also be in charge of regularly auditing the stablecoin’s US dollar reserves.

More Binance stablecoins to come

The token is part of a much larger stablecoin plan named Venus, which involves the creation of several coins pegged to fiat currencies and Bitcoin.

A handful of stablecoins have already been created as part of the project, including BGBP (pegged to the British Pound), and BTCB (pegged to Bitcoin).

All of these will be based on the Binance Chain.

A larger plan

Binance’s vision doesn’t stop here, however.

The initiative aims to branch much wider than a handful of fiat-pegged stablecoins, with Binance extending an offer to governments and organizations to collaborate on a global scale.

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