What is Binance USD?
Binance USD (BUSD) is a dollar-backed stablecoin built as a result of Binance and Pexos' cooperation. The cryptocurrency is authorized and regulated by the New York State Department of Financial Services. It is an ERC-20 token released on September 5, 2019. It allows users to reduce instability risks while transacting with digital and blockchain-powered currencies. It is possible to swap BUSD on various exchanges and DEX, among them Binance, Paxos, Coinmarketcap.com, and others. Depositing the stablecoin, users earn an interest rate. Interest rates depend on price and liquidity. Lower liquidity will boost savings interest-rates of Binance USD, and higher liquidity of Binance USD will likely decrease them. Other use cases of the token include paying for goods and services, storing it on an exchange or in a wallet, and exercising it as collateral and loan asset. Due to its entirely regulated nature, BUSD is thought of as a reliable link between fiat money and crypto assets.