Binance USD (BUSD)
BUSD is a US dollar-backed stablecoin issued by Paxos and regulated by the New York State Department of Financial Services.
Overview
BUSD is a regulated stablecoin pegged 1:1 to the US dollar, issued by Paxos Trust Company in partnership with Binance. It is designed to provide a stable, transparent, and compliant digital dollar for use in the crypto ecosystem. Paxos is regulated by the New York State Department of Financial Services (NYSDFS), ensuring that BUSD is fully backed by USD reserves held in FDIC-insured US banks. This regulatory oversight and transparency distinguish BUSD from many other stablecoins.
The primary features of BUSD include its regulatory compliance, monthly attestations of reserves, and the ability to mint and redeem tokens directly through Paxos. While Paxos has announced it will no longer mint new BUSD tokens, existing tokens remain fully redeemable for USD or convertible to Paxos USD (USDP). BUSD is widely integrated across Binance’s ecosystem and other DeFi platforms, enabling stable payments, trading, and tokenization use cases.
Developers and enterprises can integrate BUSD through standard ERC-20 interfaces on Ethereum and BEP-20 on Binance Smart Chain (now BNB Chain). The stablecoin supports use cases such as stable payments, DeFi collateral, and cross-border remittances. Paxos provides comprehensive documentation, transparency reports, and developer resources to facilitate integration and compliance. Teams looking for a regulated, transparent stablecoin with strong backing and broad ecosystem support can get started with Paxos’s open APIs and developer portal.
The Problem
Stablecoins often face challenges around regulatory compliance, transparency of reserves, and trustworthiness of backing assets. Many projects lack clear regulatory oversight or regular audits, which can create risk for users and enterprises relying on stablecoins for payments and DeFi collateral.
The Solution
Key Features
1:1 USD Backing
Each BUSD token is fully backed by US dollars held in reserve, redeemable at any time.
ERC-20 and BEP-20 Standards
BUSD supports Ethereum and Binance Smart Chain standards for easy integration with wallets and dapps.
Mint and Redeem via Paxos
Users can mint or redeem BUSD directly through Paxos, ensuring liquidity and trust.
Key Strengths
How Developers Use Binance USD (BUSD)
Stable Payments in DeFi
Developers use BUSD to enable stable, USD-pegged payments and settlements within decentralized finance applications.
Collateral for Lending Platforms
BUSD serves as reliable collateral in DeFi lending and borrowing protocols, benefiting from regulatory backing.
Cross-Border Remittances
Enterprises leverage BUSD for fast, low-cost international transfers with stable value.
Works Well WithBNB Beacon Chain (BEP2)EthereumBNB Smart ChainAvalanche
Harmony
Solana
TRON
Fuse
zkSync Era
Linea
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Pricing
Standard | |
|---|---|
| Price (Monthly) | Free |
| Price (Annual) | Free |
| Messaging | N/A |
| Support | Community support via Paxos documentation and FAQs |
| Analytics |
Resources
Paxos provides extensive resources including official documentation, transparency reports, FAQs, and developer guides to support integration and compliance with BUSD.