BUSD PriceBUSD

What is BUSD (Binance USD)?

BUSD (Binance USD) is a fiat-collateralized stablecoin pegged 1:1 to the U.S. dollar. It was issued by Paxos Trust Company, LLC in partnership with Binance and approved and regulated by the New York State Department of Financial Services (NYDFS). BUSD combines the stability of the dollar with blockchain technology, allowing users to transact with a price-stable digital asset across multiple networks. BUSD is issued by Paxos as an ERC-20 token on Ethereum and supports BEP-2; on BNB Chain, Binance offers a wrapped Binance-Peg BUSD, which is a Binance product not issued by Paxos. It is also supported on Polygon and Avalanche. Each BUSD is backed by reserves held in fiat cash at insured U.S. banks and/or U.S. Treasury bills. The token has an unlimited maximum supply, with a circulating supply of roughly 34.41 million BUSD. Following regulatory developments, Paxos no longer mints new BUSD and Binance has gradually wound down support for BUSD products, placing the asset in a mature wind-down phase.

Key Specifications & Tokenomics

• Name: Binance USD
• Ticker / Symbol: BUSD
• CoinMarketCap ID (UCID): 4687
• Official Website: https://www.binance.com/en/busd
• Launch Date: 5 Sep 2019
• Issuer: Paxos Trust Company, LLC, in partnership with Binance
• Category: Stablecoin, Fiat Stablecoin
• Peg: 1:1 to the U.S. dollar
• Blockchains / Token Standards: ERC-20 on Ethereum; BEP-2 on BNB Beacon Chain; on BNB Chain, Binance offers a wrapped Binance-Peg BUSD, which is a Binance product not issued by Paxos; supported on Polygon and Avalanche
• Ethereum (ERC-20) Contract: 0x4fabb145d64652a948d72533023f6e7a623c7c53
• BNB Chain (BEP-20): Binance-Peg BUSD, a Binance product not issued by Paxos; BUSD-BD1 swap reference contract 0x04132bF45511d03a58AFD4f1D36A29D229Ccc574
• Max Supply: Unlimited
• Circulating Supply: 34,415,677 BUSD
• Total Supply: 34.41M BUSD
• Holders: 4.08M (CoinMarketCap); 94,214 ERC-20 holders on Etherscan as of Oct 9, 2026
• Source Code on Etherscan: Verified Exact Match (Proxy). No contract security audit has been submitted for the Ethereum contract.

Who created BUSD?

BUSD was created through a partnership between Binance and Paxos Trust Company, LLC. Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high-frequency trading software. Binance offers crypto-to-crypto trading in more than 500 cryptocurrencies and virtual tokens, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own token Binance Coin (BNB). Paxos, a New York–regulated financial institution, is led by CEO and Co-Founder Charles Cascarilla. Paxos is described as the largest white-label stablecoin issuer, with a portfolio covering PYUSD (PayPal), USDG (Global Dollar Network), USDP, and the wound-down BUSD, and holds NYDFS and MAS licenses. The stablecoin operates under the regulatory oversight of the New York State Department of Financial Services.

How does BUSD work?

BUSD is a fiat-backed stablecoin pegged to the U.S. dollar on a 1:1 basis. Each BUSD is exchangeable for 1 USD from the reserves. By sending BUSD to Paxos, the issuer burns the tokens and provides the fiat currency, keeping supply and reserves at a constant 1:1 ratio. Whenever the price of BUSD moves below $1, traders can purchase BUSD in large quantities and convert it into fiat through the Paxos platform. An increase in demand naturally raises the token price back to $1, restoring the peg. New York state regulators have enforced particular measures on Paxos, Binance, and how the stablecoin must operate. Along with ensuring the token is fully collateralized, Paxos must carefully control the creation and burning of BUSD tokens, and it has the right to freeze accounts and remove funds if needed due to illegal activity. These principles adhere to the Trust Charter and New York banking laws applicable to the stablecoin. BUSD is an ERC-20 and BEP-20 token compatible with the Ethereum network and BNB Chain, allowing users to transact with a price-stable asset across multiple blockchain ecosystems. Paxos historically issued and redeemed BUSD without an extra fee. Paxos no longer mints new BUSD, though customers can still redeem BUSD for USD or convert it to USDP; redemption availability depends on Paxos and is not guaranteed at all times.

What makes BUSD unique and valuable?

BUSD is one of the few stablecoins compliant with the regulatory standards of the New York State Department of Financial Services (NYDFS). Some sources describe BUSD as one of the better-regulated and more transparently backed stablecoins, and as more compliant than USDT; this is an assessment, not a guarantee. The BUSD and associated USD supply levels are externally audited every month for transparency and compliance purposes, with the BUSD Monthly Audit Report viewable from the official website. BUSD is backed by reserves held in fiat cash in dedicated omnibus accounts at insured U.S. banks and/or U.S. Treasury bills, including through repurchase agreements and money-market funds invested in U.S. Treasury bills. Like USDC, it features similar high-quality compliance standards and reserve transparency. BUSD is also widely used across the majority of leading crypto exchanges as an asset with a firm peg to the U.S. dollar. CoinMarketCap tags BUSD as an "Alleged SEC Securities," reflecting regulatory uncertainty around the token in the U.S.

What is BUSD used for?

Based on price stability, stablecoins play an important role in transactions, payments and settlement, and Decentralised Finance (DeFi). BUSD use cases include transferring digital dollars anywhere in minutes at low cost on the blockchain; trading BUSD on different exchanges and DEX; depositing BUSD to earn an interest rate; paying BUSD as payment for goods and services; using BUSD as collateral and a loan asset; using BUSD as cross collateral in Futures; and storing BUSD on an exchange or in a wallet. BUSD holders are typically Binance ecosystem participants who use the token for trading, liquidity, and futures contracts. BUSD is widely used as a fiat-linked store of value. BUSD can be purchased and redeemed from Paxos, bought on exchanges, and stored in a wallet or on an exchange.

How Is the BUSD ecosystem developing?

The BUSD ecosystem grew from a market capitalization of around US$1B at the start of 2021 to over US$14.6B at the end of 2021. By the end of 2021 it had become one of the largest stablecoins by market cap. BUSD is issued on Ethereum and supported on BNB Chain, Polygon and Avalanche, and can be purchased and redeemed from Paxos. However, the ecosystem has since entered a wind-down phase. Paxos no longer mints new BUSD but allows customers to redeem BUSD for USD or convert their BUSD to USDP. Binance and Paxos have announced they will cease support for the BUSD token, and users are encouraged to swap their BUSD to other stablecoins or assets before February 2024. Binance has gradually wound down support for BUSD products.

How to mine BUSD?

BUSD cannot be mined. It is not a proof-of-work or proof-of-stake asset with block rewards. Instead, BUSD is a fiat-collateralized stablecoin minted and burned by Paxos Trust Company, LLC in accordance with New York banking laws and the Trust Charter. New tokens were created when approved partners deposited U.S. dollars or eligible reserves, and tokens were burned when redeemed for fiat. Paxos carefully controls the creation and burning of BUSD tokens. As of the current phase, Paxos no longer mints new BUSD, but customers can still redeem BUSD for USD or convert their BUSD to USDP. Users who wish to earn a return on stablecoin holdings typically do so through deposit or staking products offered by platforms, rather than through mining.

How to keep your BUSD Coin safe?

Because BUSD exists on multiple blockchains, including Ethereum, BNB Chain, Polygon, and Avalanche, users should confirm they are using the correct network and the correct contract address when sending or receiving tokens. Always verify all project links and data, as they may change over time, and be vigilant of scams interpreting official projects. Store BUSD in a reputable self-custody wallet or a trusted platform account, and safeguard private keys and seed phrases offline. Be aware that Binance-Peg BUSD is a Binance product; it is not issued by Paxos nor regulated by the New York State Department of Financial Services, so it carries different counterparty risk than native BUSD. Given that Paxos no longer mints new BUSD and Binance has gradually wound down support for BUSD products, holders should monitor official announcements and consider whether to swap BUSD for other stablecoins or assets. In the medium to long term, attention should be paid to trend-related selling pressure and redemption risks stemming from tightened liquidity, with a focus on BUSD's stability near $1.00 and changes in trading volume.