Cryptocurrency exchange Binance has partnered with Paxos Trust Company to introduce a US currency denominated stablecoin dubbed Binance USD (BUSD).
The stablecoin already secured the green light from the New York State Department of Financial Services.
Paxos co-founder and CEO Asia Rich Teo said: “NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets.
“We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customised for their users.”
BUSD is expected to be available on the Paxos platform later this month. Users can purchase and redeem the cryptocurrency at a 1:1 ratio against US Dollars (USD/$).
Paxos, a financial institution that digitises and mobilises assets, will also serve as the USD custodian and issuer of the new stablecoin.
Initially, the stablecoin will be available on the Binance website for trading against BTC, BNB and XRP cryptocurrencies.
Binance CEO Changpeng Zhao said: “Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin.
“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.”
The latest move comes shortly after Binance’s acquisition of crypto-asset trading platform JEX. JEX focuses on spot and derivatives trading services.