About Binance USD (BUSD)
Binance USD (BUSD) is a stablecoin pegged to the US dollar and issued by Binance in partnership with Paxos. It's designed to maintain a 1:1 value ratio with the USD, providing low volatility and ease of use in crypto transactions.
Binance USD Frequently Asked Questions (FAQ)
What is the backing for Binance USD (BUSD)?
Binance USD (BUSD) is a stablecoin pegged to the US dollar, and its value is backed by a reserve of US dollars held in FDIC-insured banks or by other forms of collateral deemed equivalent, ensuring an equivalent amount of USD backs each BUSD in circulation.
How is Binance USD (BUSD) regulated and by which authority?
Binance USD (BUSD) is regulated by the New York State Department of Financial Services (NYDFS). As a stablecoin, BUSD is issued by Paxos and is pegged 1:1 to the US dollar, with regular audits for compliance to ensure that each BUSD token is backed by the equivalent amount of US dollars.
Can you buy Binance USD (BUSD) with fiat currencies, and if so, how?
Yes, you can buy Binance USD (BUSD) with fiat currencies. To do so, register for an account on the Binance exchange or any other platform that supports BUSD, verify your identity, deposit fiat currency via bank transfer or credit/debit card, and then use the deposited funds to purchase BUSD directly.
What are the use cases of Binance USD (BUSD) in financial transactions?
Binance USD (BUSD) serves as a digital fiat representation for USD on the blockchain, facilitating faster, cost-effective, and secure transactions. Use cases include trading on Binance and other exchanges, earning interest in crypto savings accounts, using as a payment method for goods and services, transferring money across borders, and maintaining a stable store of value in the volatile crypto market.
Where can users find the BUSD Monthly Audit Report?
Users can find the BUSD Monthly Audit Report on the official Binance website under the 'Legal & Compliance' section or directly on the Binance USD (BUSD) page, where they provide links to the most recent and past audit reports. Additionally, the reports may also be made available on Paxos's official website, as Paxos is the issuer of BUSD.
What blockchain technology does Binance USD (BUSD) utilize?
Binance USD (BUSD) utilizes the Ethereum blockchain as an ERC-20 token and the Binance Smart Chain as a BEP-2 and BEP-20 token.
How has the BUSD ecosystem grown in terms of market capitalization?
The Binance USD (BUSD) ecosystem has experienced significant growth in market capitalization since its inception, reaching billions of dollars and positioning itself as one of the top stablecoins by market cap. As market conditions fluctuate, so does the market cap, reflecting the increasing trust and adoption among traders and investors in the cryptocurrency market.
What platforms support yield farming and lending for Binance USD (BUSD)?
Binance USD (BUSD) can be used for yield farming and lending on various platforms including Binance Exchange, PancakeSwap, Aave, Compound, and Curve Finance, among others. Availability can vary, so users should check the latest on each platform for current opportunities.
How does Binance utilize BUSD for charity purposes?
Binance leverages BUSD to support various charitable causes through the Binance Charity Foundation. The foundation accepts donations in BUSD and uses them to fund different projects aimed at improving education, healthcare, and economic development in underprivileged communities, as well as for emergency relief efforts.