What you need to know about BUSD

  BUSD is a stablecoin founded by Paxos and Binance, it was launched on 5th September 2019.

Technically, BUSD is a fiat-backed stablecoin that maintains a U.S. dollar peg. An amount of U.S. dollars equal to the total supply of BUSD is held in custody by Paxos, acting as its reserves in FDIC-insured U.S. banks. When the price of the U.S. dollar rises or falls, the price of BUSD also does in equal amounts. This is the most common and traditional model of all stablecoins.

BUSD offers three key attributes to transactions: accessibility, flexibility, and speed. The token is easily accessible through Paxos or Binance. You can purchase them through Binance’s exchange or fiat gateway services, or send an amount in U.S. dollars to Paxos to mint new BUSD tokens for you.


BUSD also offers flexibility in allowing crypto users to quickly turn their holdings into a stable asset without moving off the blockchain. Finally, by using BUSD, a user can quickly send money around the globe with nominal fees.

The token exists on three different blockchains: Ethereum, Binance Smart Chain, and Binance Chain. Holders can swap their tokens between the blockchains depending on their needs.

As of June 2021, BUSD is the second-largest stablecoin by market cap, standing at roughly $9,600,000,000. This figure includes its value in ERC-20 tokens, the BEP-2 and BEP-20 versions.
In conclusion, BUSD acts as both a stable investment and a useful tool for traders and investors. Its regulated status and audited reserves held in trusted financial institutions give the coin a high degree of reliability.

Risk Warning: Futures trading carries substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movements. The information here should not be regarded as financial or investment advice from Binance.