Binance USD, also known as BUSD, is a stablecoin that is pegged to the value of the US dollar. It is issued by Binance, in partnership with Paxos, and is fully compliant with regulatory requirements set by the New York State Department of Financial Services (NYDFS). BUSD was launched on September 5th, 2019 and is built on the Ethereum blockchain. It is an ERC-20 token, supporting both BEP-2 and can be redeemable 1:1 for US dollars.
BUSD offers a variety of use cases, including fast and low-cost cross-border transactions, trading on different exchanges and decentralized finance (DeFi) platforms, earning interest on deposits, paying for goods and services, and using as collateral for loans. It can also be used as cross-collateral in futures trading and can be stored in wallets or on exchanges.
The BUSD ecosystem has seen significant growth in 2021, with its market capitalization increasing from around $1 billion at the start of the year to over $14.6 billion by the end of 2021. This makes it the third-largest stablecoin by market capitalization, behind Tether and USDC. This growth is attributed to increased adoption by wallets, platforms, and services, decentralized exchanges (DEXs), and centralized exchanges (CEXs).
Popular wallets like Metamask, Trust Wallet, Trezor, and Zapper now support BUSD. Platforms and services such as travel booking site Travala, payments gateways like Moonpay and Banxa, payment APIs like Wyre, and multi-currency payment services like IvendPay and Paylot also support BUSD. On the DEX side, PancakeSwap is the top DEX in the Binance Smart Chain ecosystem, while other popular DEXs like Uniswap, 1inch, Curve Finance, Ellipsis, and SushiSwap also support BUSD. BUSD can also be traded on centralized exchanges like FTX, Gate.io, WazirX, and MEXC.