Binance Dollar’s (BUSD) market capitalisation has surpassed the 100 million dollar mark on March 10. The stablecoin has achieved this feat for the first time in its existence after being created through a partnership between Binance and Paxos Trust Company.
Stablecoins are blockchain-based digital currencies that are pegged to fiat currencies such as the US dollar or the pound. As such, each token or coin of a stablecoin represents the value held by that particular fiat currency. As BUSD’s name suggests, the asset is backed by US dollars that are stored in an FDIC-insured US bank and audited on a monthly basis.
Binance USD (BUSD) is a token that runs on top of the Ethereum blockchain. It was first traded on September 10th, 2019 with a total supply is 83,309,782 tokens.The token is traded almost exclusively on the Binance exchange and its market cap – which roughly corresponds to the total value of dollars deposited with its issuer, Paxos – is currently at $115 million. Binance USD runs on top of the Ethereum blockchain.
Binance is an exchange where users cannot trade cryptocurrencies using dollars. Therefore, stablecoins are important to its business. It lists several other stablecoins, including Tether (USDT), which has much higher volume on Binance than BUSD.
“The spectacular growth of BUSD shows that the market is hungry for an alternative. We’re excited about this milestone and proud to partner with Binance to deliver an optimal solution for our global users,” said Rich Teo, Paxos co-founder.