Binance, the biggest crypto exchange by volume, and digital asset trust company Paxos announced its partnership to launch a USD-backed stablecoin, which has received approval from the New York State Department of Financial Services (NYDFS)

Binance USD available later this month

In a press release shared with Cointelegraph on Sept. 5, Paxos co-founder and CEO Asia Rich Teo shared that the NYDFS’s approval of the stablecoin Binance USD (BUSD) is a vital step towards long term stability in global crypto markets. He continued by saying:

“We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users. The Paxos brand symbolizes regulatory integrity, consumer protection and transparency for all of our partners."

BUSD will be available for direct purchase and redemption 1:1 for U.S. dollars on the Paxos platform and for trading against Bitcoin (BTC), Binance Coin (BNB) and Ripple’s XRP on Binance.com.

CZ excited to work with Paxos

Binance CEO Changpeng Zhao — commonly known as “CZ” — said that Paxos is leading the digital trusts space and expressed that Binance is excited to work with them in developing their native stablecoin. He went on to say:

“We hope to unlock more financial services for the greater blockchain ecosystem through the issuance of BUSD, including more use cases and utility through the power of stable digital assets.”

Cointelegraph reported at the end of June that Binance and Paxos integrated a new fiat deposit gateway on Binance’s flagship trading platform, which enables traders to exchange fiat currency for the PAX Standard (PAX) stablecoin on the Paxos platform via wire transfer.