Cryptocurrency exchange Binance has received approval from the New York State Department of Financial Services (NYDFS) to launch a USD-backed stablecoin, according to a press release shared with Coin Rivet.
The stablecoin, aptly named Binance USD (BUSD), will be a collaboration between Binance and Paxos, who received a limited-purpose trust charter from the NYDFS in 2015 to become a regulated entity.
Regulatory approval from the NYDFS bodes well for the planned launch of Binance’s US exchange, which is only two months away according to the exchange’s CEO Changpeng ‘CZ’ Zhao.
Rich Teo, Paxos co-founder and CEO Asia, commented: “The NYDFS’s approval of BUSD is a vital step towards long-term stability in global crypto markets. We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customised for their users.”
Here is a peek into some of the exciting developments coming soon for #Binance US. –– by @cryptocoley https://t.co/2JvBWo1W4H
— Binance.US (@BinanceAmerica) August 9, 2019
Paxos will act as the USD custodian and issuer of BUSD. Users will be able to purchase and redeem BUSD 1:1 with US dollars via the Paxos platform. They will also be able to trade it against BTC, BNB, and XRP.
CZ added: “Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin.
“We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD, including more use cases and utility through the power of stable digital assets.”
Additional details regarding this partnership will be revealed onstage at Invest: Asia 2019, where Paxos’ Rich Teo will be speaking to Coin Rivet regular and Binance CFO Wei Zhou on September 12.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.