BUSD Price

Binance USD (BUSD) is a cryptocurrency launched in 2019. A fiat-backed stablecoin pegged to the US dollar, it received formal approval from the New York State Department of Financial Services (NYDFS).

Paxos Trust Company issued the token on behalf of Binance, enabling direct purchase and redemption at a rigid 1:1 rate with the US dollar. This mechanism strips away the extreme volatility that plagues uncollateralized digital assets. It directly addressed the friction of settlement lag between fiat rails and on-chain execution.

Binance USD operates on the BNB Beacon Chain network. The token also circulates on Ethereum, BNB Smart Chain, Solana, and several other chains via bridged and native implementations.

The asset adheres to multiple token standards: BEP-2 on BNB Beacon Chain, ERC-20 on Ethereum, BEP-20 on BNB Smart Chain, and SPL on Solana. Smart contracts govern issuance on each blockchain, with the foundational Ethereum contract deploying at 0x4fabb145d64652a948d72533023f6e7a623c7c53. This cross-standard architecture embedded BUSD into decentralized exchanges, automated market makers, and lending markets without gatekeeping barriers.

Binance, the exchange colossus founded by Changpeng Zhao in 2017, introduced BUSD through its partnership with Paxos in 2019. The stablecoin rapidly scaled, claiming the position of third-largest stablecoin by market capitalization in 2022 behind Tether and USDC. That trajectory halted abruptly in February 2023, when the NYDFS ordered Paxos to cease minting new tokens. Binance formally terminated support for the product in September of that year.

The instrument was engineered to fuse traditional fiat trust with crypto-natively composable infrastructure under a regulated umbrella. The NYDFS seal functioned as a signal to institutional counterparties that reserve backing met specific prudential standards, countering the opacity that dogged many offshore stables. A direct redemption right anchored its utility as a cash-equivalent for settlement and payments.

Each BUSD token constitutes a claim on one US dollar held in Paxos-administered bank reserves. The issuer published monthly attestations verifying full collateralization, and any holder could redeem tokens directly for wire-transferred fiat. On Binance’s spot and derivatives markets, BUSD acted as a base quote currency, absorbing inflows during risk-off rotations and providing a stable denominator for leveraged positions.

Hedgers and speculative traders parked capital in BUSD to exit directional risk without off-ramping to bank accounts. Arbitrage bots exploited peg deviations as narrow as a few basis points by buying discounted tokens and redeeming them at par with Paxos. Lending protocols accepted it as collateral for stable-rate borrowing, while remittance corridors used it to short-cut correspondent banking delays.

Binance USD has a total supply of 40,026,297.13 tokens. Currently, 40,026,297.13 are in circulation. With a market capitalization of $39,977,943, Binance USD ranks #556 among all cryptocurrencies.