Binance and Paxos join hands to launch a USD-backed stablecoin in October

Malta-based Binance newest development adventure a stablecoin that will be launched in collaboration with Paxos. According to the announcement on Thursday, the stablecoin will be USD-pegged.

Both Binance and Paxos have been approved to distribute the token across the United States by the New York State Department of Financial Services (NYDFS). The stablecoin has been named Binance USD (BUSD).

The co-founder and CEO of Paxos, Rich Teo expressed his excitement for the approval saying:

“NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets. We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users. The Paxos brand symbolizes regulatory integrity, consumer protection and transparency for all of our partners.”

While Binance will list the digital asset, Paxos is responsible for selling it on its platform against a redemption ratio of 1:1 against the US dollar. Initially, traders will have the chance to exchange BUSD with Bitcoin, Binance Coin, and Ripple.

Binance is becoming a cryptocurrency giant that will be difficult to reckon with in the near future. Almost every week, the largest exchange in the world is announcing the release of a new products in addition to launching new businesses.