What Is Binance USD (BUSD)?

Binance USD (BUSD) is a recent USD-denominated stablecoin backed by the New York State Department of Financial Services (NYDFS). The platform is launched in collaboration with Paxos and Binance. The network is supported by resources held in traditional currency in dedicated collection accounts at insured U.S. financial institutions.

As per the whitepaper, the protocol aims at transferring currency globally, quickly, and at a low cost on the blockchain. Also, the Binance USD network aims to establish a world-class cryptocurrency exchange platform channeling the future of crypto finance.

The Binance USD seeks to solve the issues of the present crypto exchanges, and those problems are as follows:

• Poor technical architecture: Many exchanges are equipped with sound technical architects who have little understanding or no experience in finance or operating an exchange. And the process may affect the initial development but is crucial for long-term success. 

• Insecure platform: The platform experiences building financial systems to high security standards and seeks to prioritize security.

• Poor market liquidity: Professional traders and ordinary users are concerned with poor market liquidity that seems expensive for traders.

• Poor customer service: Binance shares responsibilities across the entire staff and company. When traders face an issue, they are answered directly by someone who knows the system.

• Poor internationalization and language support: An international multilingual team has comprehensive working experience and can smoothly support the global market.

Further, BUSD is a new USD-denominated ERC20 stablecoin launched in partnership with Paxos and Binance. BUSD token is utilized for trading crypto on Binance, and it is also used wherever ERC20 tokens are welcomed for commerce, loans, payments, etc. 

History of Binance USD (BUSD)

Changpeng Zhao, Roger Wang, and James Hofbauer cofounded the  Binance USD platform. Zhao serves as chief executive officer (CEO), Wang works as chief technology officer (CTO), and Hofbauer serves as chief architect. The platform was launched on September 5, 2019.