Binance Receives NYDFS Approval for Stablecoin Backed By US Dollars

Binance is on a roll.

The world’s biggest cryptocurrency exchange by trading volume said Thursday that it had received approval from the New York Department of Financial Services (NYDFS) to launch a stablecoin (a cryptocurrency pegged to a fiat currency or a basket of goods) backed by the US dollar. The stablecoin, which will have a 1:1 ratio with its fiat equivalent, is called BUSD and will be available in Bitcoin, Binance Coin, and XRP trading pairs on the exchange.

It will be built on Ethereum’s blockchain and is being launched in partnership with Paxos, a New York-based crypto infrastructure startup, which will act as custodian for the stablecoin. Binance customers will be able to purchase the stablecoin using BNB, the exchange’s native tokens.

“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,” Binance CEO Changpeng Zhao (CZ) told publications.

The Malta-based exchange had earlier announced Venus, a blockchain to issue stablecoins pegged to local currencies around the world. The company is developing a roster of fiat-based stablecoins on the blockchain. “We hope to achieve a vision, that is, to reshape the world financial system, allow countries to have more tangible financial services and infrastructures, protect their financial security and increase the economic efficiency of countries,” Binance co-founder Yi He had told Coindesk then.

Binance’s partner in this venture Paxos also has similar ambitions. It has issued tokens pegged to an ounce of gold and US dollars on its platform.