What is BUSD? Recently, there have been many questions about the safety and soundness of products in the crypto space. There have been many questions about stablecoins in general, so this piece is intended as an explanation of BUSD.
First and foremost, BUSD is a stablecoin pegged to the US Dollar (USD) which came from a partnership between Binance and Paxos. BUSD is issued by Paxos Trust Company, an NYDFS-regulated entity, on the Ethereum blockchain.
This regulated status comes with some conditions attached which restrict the actions that Paxos is allowed to undertake. This is in addition to the NYDFS having the authority to evaluate Paxos’ operations and oversee the stablecoin.
BUSD is designed with three important areas in mind: high quality reserves, audits, and