Binance USD

Binance USD

BUSD
$0.99945408
0.01%
$0.99472130

24H Price

$1.00


About Binance USD

The Binance USD price is $0.99945408, a change of 0.01% over the past 24 hours as of 6:16 p.m. The recent price action in Binance USD left the tokens market capitalization at $1.01B. So far this year, Binance USD has a change of -0.07%. Binance USD is classified as a Stablecoin under CoinDesks Digital Asset Classification Standard (DACS).

Binance USD, which is also known as BUSD, is a U.S. dollar stablecoin issued by crypto exchange Binance and blockchain company Paxos Trust. Similar to rivals USDC and tether (USDT), the BUSD stablecoin attempts to maintain a price of one U.S. dollar at all times through its backing of fiat reserves.

Traders use stablecoins to keep their holdings at a steady value and on the blockchain without withdrawing crypto for fiat currencies. They are some of the largest and most traded crypto assets, and BUSD is one of the most popular.

BUSD price

BUSD is worth $1. After the stablecoin was launched in September 2019, its price hasn’t deviated by more than a few cents, other than during the March 2020 flash crash. When the global pandemic hit financial markets in 2020, BUSD reached a high of $1.11 on March 11 of that year and an all-time low of $0.88 less than 24 hours later.

Paxos handles its issuance. Whenever someone wants to redeem BUSD for cash, Paxos burns (destroys) BUSD and sends cash to the withdrawer’s bank account. And whenever someone wants to create BUSD with U.S. dollars, Paxos mints more USD in exchange for the dollars.

As such, there isn’t a cap on the total number of BUSD that can ever exist – its supply depends on how much money people have entrusted to Paxos. As of May 2022, BUSD was the fourth-largest stablecoin by market capitalization after tether, USDC and TerraUSD (UST).

How does BUSD work?

BUSD is based on the Ethereum blockchain, and it also supports the Binance Chain’s BEP-2 standard. It can be minted by wiring money to Paxos, or by exchanging it with different fiat currencies and cryptocurrencies on exchanges like Binance.

While it bears Binance’s name and trades widely on that exchange, Paxos handles the issuance. Binance has often promoted the coin, for instance by scrapping trading fees for BUSD pairs, and neither Binance nor Paxos charges for purchases or redemptions.

Paxos keeps all of the fiat it receives in a trust, and then puts that money into U.S. bank accounts. Paxos claims to hold $1 for each BUSD it issues, meaning that the coins are issued at a 1:1 backing. Paxos publishes independent attestations from an auditor to verify that it holds the total supply of BUSD in bank accounts that are insured by the Federal Deposit Insurance Corp.

Paxos also invests some of the money in U.S. government debt. The attestation reports confirm that the money is held in bank accounts and that Paxos has the right to hold money in instruments that “generally include, but are not necessarily limited to U.S. dollars, U.S. Treasury backed Bills, Bonds and Notes.” It should be noted that the attestations aren’t the equivalent to an audit – they only attest that Paxos held the money at a certain moment in time.

Key events and management

Unlike decentralized (or algorithmic) stablecoins like UST and DAI, BUSD is entirely centralized. Paxos is run by CEO and co-founder Charles Cascarilla, and Binance is run by Changpeng Zhao, who is better known by his nickname, CZ.

BUSD is notable for being approved by the New York Department of Financial Services, a notoriously difficult regulator to work with. Only three other U.S. dollar stablecoins have received such approval: GUSD (from crypto exchange Gemini), Z.com USD (ZUSD) and the Pax Dollar (USDP) – another stablecoin issued by Paxos.

Read less...
Sponsor LogoBuy & sell crypto Hassle-Free
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Latest About Binance USD

View All
Large crypto exchanges are leaning towards “liquidity capture,” according to one trading firm (Mohan Murugesan/Unsplash)
Crypto Exchanges Clamping Down on Prime Brokers Is Backwards Step for Market Efficiency, Traders Say

Binance and OKX say closing a loophole that meant crypto prime brokers could offer lower fees is about transparency and creating a level playing field. Some trading firms say...

Large crypto exchanges are leaning towards “liquidity capture,” according to one trading firm (Mohan Murugesan/Unsplash)
Crypto exchanges are clamping down on fees. (Matt Artz/Unsplash)
A Crypto Trading Clampdown Expands Beyond Binance to Another Large Exchange

The second-largest crypto exchange, OKX, asked key trading firms for more information about their clients, in what appears to be an effort to root out misuse of a VIP fee prog...

Crypto exchanges are clamping down on fees. (Matt Artz/Unsplash)
(Monero Project, modified by CoinDesk)
Monero's XMR Token Reverses February Slide With Golden Cross

XMR has gained 25% in four weeks amid a crackdown on Botnet mining in some European countries and one of the leading miners' decision to shut down operations.

(Monero Project, modified by CoinDesk)

This year, games on TON have taken off, garnering hundreds of millions of users in a few months Read more...

CoinDesk Indices

View All
Top Indices including Binance USD
Logo
Index nameTickerWeight24H

Bitcoin Calculator

Last Updated on 07/24/24 6:16 PM

CoinDesk’s Bitcoin and Cryptocurrency Calculator determines the exchange rates between major fiat currencies and cryptocurrencies – including BTC, BCH, ETH and XRP to USD, EUR, GBP, IDR and NGN – with up to six decimal places of accuracy. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates.