Binance's USD stablecoin has been given the green light by New York's financial watchdog, meaning licensed institutions can use the asset without any further regulatory approval.
- The New York Department of Financial Services (NYDFS) updated its "Greenlist" this week to include Binance USD (BUSD).
- This means permissioned financial institutions in the New York area can now custody and list BUSD without prior approval from the NYDFS but must still inform the regulator before adding it.
- Binance Compliance Officer Samuel Lim told CoinDesk BUSD could be accepted "on an immediate basis" by licensed entities.
- Binance said BUSD was NYDFS-approved at its launch in September 2019, but exchanges needed approval before listing it.
- BUSD is a white-label stablecoin from the Paxos Trust Company, which the NYDFS approved to issue stablecoins in 2018.
- Notably absent is Binance coin (BNB), the exchange's native token. The spokesperson declined to comment on whether Binance was trying to get BNB greenlisted.
- Binance U.S., the exchange's local trading platform, is still not available in New York.
UPDATE (Aug. 9, 19:10 UTC): This article has been updated to specify the approval applies to banks and other permissioned financial institutions.
UPDATE (Aug. 9, 22:09 UTC): This article has been updated to remove quote about JPMorgan offering the stablecoin as it's not on the list of licensed institutions.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.