About BUSD

Binance USD (BUSD) is a stablecoin backed by fiat currency, representing a digital version of the US dollar and maintained on a 1:1 peg with USD. Approved by the New York State Department of Financial Services (NYDFS), it was launched in 2019 through a partnership between Paxos and Binance. Paxos acts as the custodian and issuer of BUSD, holding USD reserves that match the total supply of BUSD and providing regular audits to verify this reserve. To maintain its peg, Paxos burns BUSD tokens in exchange for fiat currency or mints new tokens when USD deposits are made. When BUSD trades below $1, arbitrageurs buy and redeem the tokens to restore the peg. BUSD exists on three blockchains: Ethereum, Binance Smart Chain (BSC), and Binance Chain, with bridge versions on other chains like Solana an...