About Binance USD
The price Binance USD today is 1.00 USD, and the trading volume in 24 hours - 3,699,072,962 USD. The crypto asset has grown by 0.01% over the day. Currently, the coin’s market capitalization is 12,199,774,830 USD, and has 12,198,103,690 coins in circulation with the max supply of 1,095,085,130 coins BUSD.
What is Binance USD (BUSD)?
Binance USD (BUSD) is a fiat - backed stablecoin that offers the benefits of blockchain-based asset transactions while reducing price risk. BUSDs are issued as ERC-20 tokens on the Ethereum blockchain and are backed by 1: 1 US dollars in US bank accounts owned by Paxos. BUSD is also one of three stablecoins approved by Wall Street regulators, along with GUSD and PAX.
Who is the creator of Binance USD?
Launched in 2019 in collaboration between Binance and Paxos, BUSD is the first stablecoin of the Binance Venus project. During the development, it was also revealed that NYDFS has approved a new offering that Binance is launching in partnership with Paxos.
The Paxos team, led by CEO and co-founder Charles Cascarill, is made up of people with diverse backgrounds, from Wall Street to Silicon Valley.
BUSD was created to improve the larger financial ecosystem by creating a seamless global network where digital assets can be mobilized with significantly greater speed, flexibility, and availability.
What is the uniqueness of Binance USD?
BUSD can be transferred via the Ethereum blockchain in the same way as with ETH, or with any other ERC-20 asset. If the user wishes to redeem the BUSD, they can send the tokens to an address controlled by Paxos, which will destroy the tokens and transfer the fiat currency to the user's bank account.
Having BUSD on public blockchains allows traders and exchanges to use BUSD as an alternative to fiat currencies, allowing them to outsource their banking needs to Paxos. BUSD's existence as an ERC-20 token on Ethereum allows it to be integrated with Ethereum-based applications.
How many BUSD coins are in circulation?
As of January 2021, there are 1,485,072,224 BUSD coins in circulation. There is no limit to the number of busds that Paxos can generate. BUSDS are created only when depositing dollars. When BUSDS are exchanged for money, the tokens are subject to immediate destruction. In this way, the price remains stable, because the amount of BUSD in circulation exactly corresponds to the number of reserve dollars, so the price ratio will always be 1: 1.
How is the Binance USD network protected?
Binance USD is fully backed in a 1: 1 ratio with US dollars in bank accounts, which means that the total amount of BUSD is backed by the fiat currency that is held in the Paxos reserve. Requests to buy and redeem BUSD cause cash to move in and out of the reserve, which in turn has a supplyController address and burns tokens accordingly.
Paxos is the only organization that can change the turnover of BUSD tokens. Paxos issues tokens when users deposit fiat currency into Paxos bank accounts, while destroys tokens when users redeem them for deposits in fiat currency in Paxos bank accounts.
To prove the availability of reserves and the solvency of the system, BUSD relies on a reserve confirmation system, under which the system is fully secured when the amount of BUSD in circulation matches the value of funds held in individual accounts in insured FDIC.
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