CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$23,725.00
  • ethereum
    ETH$1,753.81
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Crypto Fund
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    sp
    Home » Projects » Binance USD (BUSD): Fully-Backed and Regulated Stablecoin

    Binance USD (BUSD): Fully-Backed and Regulated Stablecoin

    Author: Danish Yasin

    Last Updated Jun 29, 2022 @ 09:06

    Cryptocurrencies are risk assets, and the recent market crash shows how volatile they can be. While crypto assets are now more popular than ever, many investors are still skeptical about joining the industry, considering the unpredictable nature of the market.

    The first stablecoin was launched in 2014 to minimize the volatility of crypto assets. Since then, at least 200 different stablecoins have been developed, but not all stablecoins are built equally.

    Stablecoins are cryptocurrencies whose values are pegged to a non-crypto asset or basket of assets, such as fiat and gold, to stabilize the price. For instance, a stablecoin tied to the U.S. dollar at 1:1 is expected to stay at $1 at all times. Unfortunately, not all stablecoins can maintain their peg during extreme market conditions due to a lack of sufficient reserve.

    Since May, we have seen several stablecoins depegged from their supposed pegged value, causing investors to lose billions of dollars. Despite this, a few stablecoins have managed to weather all storms, and the Binance USD (BUSD) is a good example.

    What is BUSD?

    Binance USD (BUSD) is a stablecoin founded by two of the biggest names in the crypto space – Binance and Paxos. It was launched in 2019, and its value is pegged to the U.S. dollar at 1:1, meaning that for every unit of BUSD, one U.S. dollar is held in reserve.

    BUSD is designed to maintain stable value in the highly volatile crypto market. It allows investors and traders to take on several high-risk investment products with more financial protection from market uncertainties.

    Binance USD has been able to perform well and establish itself as the third-largest stablecoin and the sixth-largest crypto asset by market capitalization. As a result, more users are choosing to add BUSD to their CeFi and DeFi investment portfolios.

    Features of BUSD

    BUSD offers several features that make it one of the most popular stablecoins in the market.

    img1_bnb

    Audited and 100% Cash Reserves

    Considering the controversy surrounding stablecoin reserves, the founders of BUSD have gone to great lengths to ensure that the stablecoin is an above-board crypto product. Binance USD is one of the few stablecoins in the world that is backed 100% with actual cash and cash equivalent reserves in different FDIC-insured bank accounts held and managed by Paxos, a leading New York-based blockchain-focused financial institution.

    It is also one of the few stable cryptocurrencies that provide monthly audited reports of its reserves. This allows users to independently verify the consistency of BUSD’s supply and the USD reserves at specific periods.

    Regulation

    BUSD adheres to some of the most stringent compliance standards to provide maximum protection for investors. The stablecoin was green-listed in 2020 by the New York State Department of Financial Services (NYDFS).

    Being regulated by the NYDFS entails that all activities involving BUSD operations are carefully overseen by the financial regulator, including the reserves, asset custody, and management. This assures users that their crypto assets are secure at all times.

    CeFi and DeFi Bridge

    BUSD functions as a bridge between the centralized finance (CeFi) and decentralized finance (DeFi) ecosystems by providing users with a level of monetary freedom that is not obtainable with fiat currencies.

    In addition, it provides a higher level of security to users from threats more commonly associated with the DeFi space while offering an attractive annual percentage yield (APY) on DeFi protocols. With BUSD, users can participate in DeFi-native services like yield farming with increased protection from uncertainties than other more volatile crypto assets.

    Additional Perks of Using BUSD

    Zero Maker Fees

    BUSD holders enjoy zero fees on the Binance exchange when they place orders using their BUSD. With more than 300 BUSD spot and margin trading pairs on the platform, users can place complete trades for free using the stablecoin.

    Deep Liquidity

    For traders, BUSD provides high liquidity in the Binance ecosystem. They can easily trade, invest, and conduct other transactions on the Binance trading platform using BUSD. It also makes it easy for traders to trade newly-listed tokens as soon as they are available on Binance’s exchange.

    Purchase NFTs on Binance NFT Marketplace

    BUSD gives you access to the world of NFTs. Once you have the stablecoin in your Binance account or wallet, you can access thousands of digital collectibles listed on the Binance NFT marketplace.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Danish Yasin
    More posts by this author

    A freelance writer with more than three years of experience and can write research papers, blogs and web articles. An aspiring Computer Scientist and technology enthusiast. Contact Danish: LinkedIn

  • bitcoin
    BTC$23,725.00
  • ethereum
    ETH$1,753.81
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview)

    Users in Web3 Will Do a lot More Than Just Trade Crypto: Cronos’ Ken Timsit (Interview)

    Institutions Are Starting to Buy Back: Interview with Nansen

    Institutions Are Starting to Buy Back: Interview with Nansen

    Top 5 Most Common Scams Related to Ethereum 2.0

    Top 5 Most Common Scams Related to Ethereum 2.0

    What is the Merge? What You Need to Know About the Transition to Ethereum 2.0

    What is the Merge? What You Need to Know About the Transition to Ethereum 2.0

    These are the Bear Market Benefits, and the Future of NFTs: DappRadar CEO (Interview)

    These are the Bear Market Benefits, and the Future of NFTs: DappRadar CEO (Interview)

    5 Common Mistakes to Avoid During a Crypto Bear Market

    5 Common Mistakes to Avoid During a Crypto Bear Market

    The Cardano Roadmap Eras Explained: Byron, Shelley, Goguen, Basho, and Voltaire

    The Cardano Roadmap Eras Explained: Byron, Shelley, Goguen, Basho, and Voltaire

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!