The Bitcoin exchange Binance will launch its own stable coin. Together with the blockchain company Paxos, the exchange has been approved by the New York State Department of Financial Services for the approval of the Binance US Dollar (BUSD).
The Bitcoin exchange Binance will compete with Tether in the future. With the BUSD Stable Coin, the company will deliver a cryptocurrency to cover the US $ 1 to 1.
As the company in a blog post telling , it has for the permission of the New York State Department of Financial Services (NYDFS) get. Binance will also bring the BUSD together with the Paxos Trust Company to the Hodler.
More about stable coins in the Bitcoin ecosystem
Stable coins come with the promise of a stable value. In contrast to Bitcoin, which is valued and feared for its volatility or price fluctuations, stable coins are covered by other currencies or assets. They map the respective asset 1 to 1.
In the past, however, market leader Tether repeatedly came into the Bitcoin news headlines. For example, the Stable Coin provider quickly changed the guidelines, which no longer guaranteed the coverage of digital coins by US dollars. In addition, Tether Limited is suspected of misappropriating $ 850 million with bitcoin exchange BitFinex . With her BUSD, Binance enters a promising field.