Binance launches BUSD stablecoin, Paxos takes out the role of custodian

Binance, the world's largest crypto platform in terms of trading volume, presents its own stablecoin, the value of which is tied to the US dollar in a 1: 1 ratio.

It is known that BUSD will be based on the Ethereum project blockchain. The Paxos team will take part in the project for developing stablecoin from Binance – the company will be engaged in the issue of stablecoin and act as a custodian of phyto reserves. Note that recently Paxos introduced its own stable coin – Paxos Standard Token (PAX), the coin is also tied to the US national currency.

Changpeng Zhao, the head of Binance, noted that Paxos is a leader among digital trusts, so the crypto exchange is pleased to entrust Paxos with developing its own stablecoin. The company's system will be used to acquire and redeem BUSD. Bidding will start this month, but there is no exact start date yet. Initially, stablecoin will be presented on the site in tandem with Bitcoin, Binance Coin, Ripple. Companies claim that they have already managed to get approval for working with BUSD from NYDFS.