With a lot of crypto activity happening on the Binance ecosystem, BUSD has emerged as one of the leading cryptos.
BUSD is one of the three main stablecoins that are widely used today alongside Tether (USDT), USD Coin (USDC). Each of these stablecoins has a value equivalent to one US dollar.
The BUSD stablecoin was founded by Paxos and Binance in an effort to create a cryptocurrency that would be backed by the US dollar.
To support this value, Paxos holds an amount of US dollars that is equal to the total supply of BUSD. Therefore, the price of the stablecoin fluctuates directly with the price of USD.
Since its launch in 2019, the stablecoin has performed so well that it is now an asset with a $10 billion market cap.
- BUSD users can take on yield farming and liquidity pools with more financial protection from uncertainties than in fiat-related or crypto-heavy products
- BUSD also allows users to trade with multiple contracts any time
- Due to its interoperability and accessibility, BUSD gives traders the ability to trade with much greater ease, speed and flexibility
Following the global adoption of BUSD, a large network has been created which has enabled even more use cases.
For example, not only is it often used as an investment tool for derivatives trading, BUSD is also a popular choice for people looking to stabilize their personal funds.
It is reported that many countries around the world have unreliable currencies and BUSD and other stablecoins have become a safe haven for people looking to climb out of poverty and preserve the value of their assets.
Paxos ensures the value of BUSD by performing regular audits to back the US dollar reserves held is equal to the supply of BUSD at a 1:1 ratio. These audits are carried out alongside Withum, an accounting firm.
The strict regulatory standards that BUSD adhere to set a new industry standard making it one of the best choices when it comes to stablecoins.