What makes Binance USD (BUSD) special?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, let’s take a look at yet another stablecoin, Binance USD.

Binance USD is the third largest stablecoin on the market with almost $20 billion US dollar exchanged for it. The price of Binance USD is linked to the US Dollar, making it yet another potential candidate to use for everyday payments as that gets rid of price volatility of traditional crypto.

Fans of this podcast will know that we’ve spent a few episodes on stable coins already - how they work, and analyzing just how stable they really are – or are not. So what makes Binance USD special next to the others we have talked about, like USDC and Tether?

Binance USD is actually very similar to USDC, as it is fully audited and regulated by a government. In this case, the New York State Department of Financial Services has given its seal of approval.

And also just like USDC, Binance USD is 100% backed by real dollars: When you buy one BUSD, the company puts aside that one US Dollar you purchased it with, meaning you can always exchange USDC back fully. Remember! That isn’t always the case for stablecoins, Tether for example is notoriously intransparent about its backing.

One notable difference that BUSD has going for itself is that it can operate on the Binance smart chain, which is cheap and fast. USDC in contrast, when used over the Ethereum blockchain, suffers from high transaction costs that reach $20-30 dollars easily.

And that is it on Binance USD! We hope you enjoyed this episode. Learn more and come see us for a first glimpse into cryptohunt at beta.cryptohunt.it.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.