<h1>What is Binance USD (BUSD) ?</h1>Binance USD (BUSD) is a stablecoin that combines the stability of the US dollar with the versatility and innovation of blockchain technology. Launched in September 2019, BUSD is a 1:1 USD-backed token approved and regulated by the New York State Department of Financial Services (NYDFS). Designed as a digital fiat currency, BUSD is issued on the&nbsp;<a href="https://coin360.com/coin/ethereum-eth" target="_blank">Ethereum</a>&nbsp;blockchain as an ERC-20 token and also supports the BEP-2 standard.<h2>History and Founding Team</h2>Binance USD was created through a partnership between&nbsp;<a href="https://coin360.com/exchange/binance" target="_blank">Binance</a>, one of the world's largest cryptocurrency exchanges, and Paxos, a leading provider of blockchain infrastructure solutions. The founding team includes Changpeng Zhao (CZ), the CEO of Binance, and Charles Cascarilla, the CEO of Paxos. Since its launch, BUSD has seen tremendous growth and adoption, expanding its utility and value within the digital asset ecosystem.In March 2023, the price of BUSD briefly deviated from its 1:1 peg due to&nbsp;<a href="https://coin360.com/news/binance-ceo-denies-interpol-red-notice-rumors" target="_blank">rumors surrounding its founder, CZ,</a>&nbsp;who was reportedly the subject of a potential red notice from Interpol. While the situation was quickly resolved, it highlights the importance of staying informed about the latest developments affecting the token and its ecosystem.<h2>Blockchain and Smart Contracts</h2>The technology behind BUSD revolves around blockchain, the digital ledger that securely records transactions, and smart contracts, self-executing agreements with the terms directly written into code. Smart contracts enable the token's core functionalities, such as minting, redemption, and transfers. The use of blockchain and smart contracts provides numerous advantages over traditional tokens, including increased security, transparency, and efficiency.To ensure network security, BUSD employs a consensus mechanism, which relies on validators to agree on transaction validity and maintain the blockchain. This consensus mechanism varies depending on whether the BUSD token is on the Ethereum or Binance Smart Chain (BSC) network. On the Ethereum network, BUSD uses the Proof-of-Stake (PoS) consensus, while on the BSC network, it employs the Proof-of-Staked-Authority (PoSA) consensus.<h2>BUSD Use Cases and Ecosystem Growth</h2>BUSD offers a wide range of use cases that capitalize on its price stability. Some of the most notable use cases include:<ol><li dir="ltr" aria-level="1">Transferring digital dollars (BUSD) globally in minutes at a low cost and on the blockchain.</li><li dir="ltr" aria-level="1">Trading BUSD on various exchanges and decentralized exchanges (DEXs).</li><li dir="ltr" aria-level="1">Depositing BUSD to earn interest.</li><li dir="ltr" aria-level="1">Paying for goods and services using BUSD.</li><li dir="ltr" aria-level="1">Using BUSD as collateral and loan assets in Decentralized Finance (DeFi) platforms.</li><li dir="ltr" aria-level="1">Utilizing BUSD as cross-collateral in futures trading.</li></ol>The BUSD ecosystem has grown exponentially in recent years, driven by increased user adoption and support from wallets, platforms, services, DEXs, and centralized exchanges (CEXs). Top wallets like MetaMask, Trust Wallet, Trezor, and Zapper now allow users to hold BUSD. Platforms and services like travel booking site Travala, payment gateways Moonpay and Banxa, payment APIs Wyre, and multi-currency payment services ivendPay and Paylot also support BUSD. BUSD is available on leading DEXs, including&nbsp;<a href="https://coin360.com/exchange/pancakeswap" target="_blank">PancakeSwap</a>,&nbsp;<a href="https://coin360.com/exchange/uniswap" target="_blank">Uniswap</a>,&nbsp;<a href="https://coin360.com/coin/1inch-1inch" target="_blank">1inch</a>,&nbsp;<a href="https://coin360.com/coin/curve-dao-token-crv" target="_blank">Curve Finance</a>,&nbsp;<a href="https://coin360.com/coin/ellipsis-epx" target="_blank">Ellipsis</a>,&nbsp;<a href="https://coin360.com/coin/mdex-mdx" target="_blank">MDEX</a>,&nbsp;<a href="https://coin360.com/exchange/sushiswap" target="_blank">SushiSwap</a>, and&nbsp;<a href="https://coin360.com/coin/0x-zrx" target="_blank">0x</a>.For users interested in yield farming and lending BUSD, it is available on centralized platforms like Binance. Top DeFi protocols like Venus, Aave, Yearn.Finance, and more also allow users to earn yield on their BUSD. This extensive ecosystem growth has propelled BUSD to become the third-largest stablecoin by market capitalization, following Tether (<a href="https://coin360.com/coin/tether-usdt" target="_blank">USDT</a>) and USD Coin (<a href="https://coin360.com/coin/usd-coin-usdc" target="_blank">USDC</a>).<h2>Transparency and Asset Backing</h2>In an effort to maintain transparency and trust, Paxos regularly discloses the assets backing BUSD. As of June 30, 2022, 96% of the assets backing Binance USD were held in cash and cash equivalents, with the remaining 4% invested in U.S. Treasury bills. Paxos holds all cash balances in U.S.-insured depository institutions, while cash equivalents are held in "U.S. Treasury bills with maturities of 3 months or less, or overnight repurchase agreements, overcollateralized by U.S. Treasury instruments."<h3>BUSD and Charity</h3>Binance has demonstrated the potential of cryptocurrency in supporting humanitarian aid through its charitable endeavors. In April 2022, Binance donated $2.5 million in BUSD through its charity organization to USA for UNHCR, a UN refugee agency. This was the agency's first stablecoin crypto donation, highlighting the growing role of digital assets in fundraising and philanthropy.<h2>How to Buy the Token</h2><ol><li dir="ltr" aria-level="1">Choose a reputable cryptocurrency exchange, such as Binance, Bybit, Bitrue, Bitget, or BingX.</li><li dir="ltr" aria-level="1">Create an account with your chosen exchange and complete the necessary identity verification steps.</li><li dir="ltr" aria-level="1">Fund your account with a supported cryptocurrency or fiat currency.</li><li dir="ltr" aria-level="1">Search for the BUSD trading pair (e.g., BUSD/USDT) and execute a buy order at the desired price.</li><li dir="ltr" aria-level="1">Store your newly purchased BUSD in a secure wallet, such as MetaMask, Trust Wallet, or Trezor.</li></ol>In addition to purchasing BUSD on exchanges, you can also acquire the token directly from Paxos. Paxos offers a seamless process for users to buy and redeem BUSD at a 1:1 ratio with USD, ensuring liquidity and ease of access. <h2>Binance USD (BUSD) Contract address:</h2>As per Etherscan, the Ethereum contract address for BUSD is: <a href="https://etherscan.io/token/0x4fabb145d64652a948d72533023f6e7a623c7c53" target="_blank">0x4Fabb145d64652a948d72533023f6E7A623C7C53</a> As per BscScan, the Binance Smart Chain contract address for BUSD is:<a href="https://bscscan.com/token/0xe9e7cea3dedca5984780bafc599bd69add087d56" target="_blank" style="background-color: white;">0xe9e7CEA3DedcA5984780Bafc599bD69ADd087D56</a>Securing Your BUSD Holdings As with any digital asset, securing your BUSD holdings is crucial. When storing your tokens, opt for reputable wallets that prioritize security and user-friendliness. For maximum security, consider using hardware wallets like Trezor or Ledger. Always practice proper digital asset management, such as regularly updating your wallet software, using strong passwords, and enabling two-factor authentication (2FA).<h2 dir="ltr">Frequently asked questions about BUSD</h2><ul><li dir="ltr" aria-level="1">Can I mine or stake BUSD?</li></ul>No. You can neither mine, nor stake BUSD. Instead, you can purchase it with USD on the Paxos website or from cryptocurrency exchange platforms.<ul><li dir="ltr" aria-level="1">What are some of the best wallets for BUSD?</li></ul>Your choice of BUSD wallet will be determined by whether you have ERC-20 or BEP-2 BUSD coins. Some of the top BUSD wallets are MetaMask, Guarda Wallet, Ledger, Trust Wallet and Coinomi.<ul><li dir="ltr" aria-level="1">What can you do with BUSD coins?</li></ul>You can use BUSD coins for buying goods and services, value storage, taking crypto loans, trading against other crypto assets, cross-border payments and more.<ul><li dir="ltr" aria-level="1">How can you buy BUSD stablecoin?</li></ul>The ideal way to buy BUSD is from established crypto exchanges. You can buy it with fiat currency via Paxos, or exchange popular cryptocurrencies like <a href="https://coin360.com/coin/litecoin-ltc" style="">LTC</a>, <a href="https://coin360.com/coin/ethereum-eth" style="">ETH</a>, <a href="https://coin360.com/coin/bitcoin-btc" style="">BTC</a>, <a href="https://coin360.com/coin/ripple-xrp" style="">XRP</a> etc. for BUSD on Binance.

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