Binance USD Price Data
The live Binance USD price today is $1.00 with a 24-hour trading volume of $10,297,512,291.
We update our BUSD to USD price in real-time. The price of Binance USD has changed -0.07% in the last 24 hours.
Currently, Binance USD is the #7 largest cryptocurrency by market cap, with a live market cap of $16,202,077,218.00. It has a circulating supply of 16,185,763,260 BUSD coins but the maximum supply is not available.
What is Binance USD?
Binance USD is a stablecoin pegged to the US dollar. It is issued by Paxos in partnership with Binance and regulated by the New York Department of Financial Services (NYDFS).
Binance USD is hard-pegged 1:1 to the US dollar which means one BUSD is equal to one dollar.
Stablecoins like BUSD play a key role in the crypto market. For example, they help alleviate the effects of volatility inherent in the crypto space. As the name suggests, stablecoins bring some form of stability to the wildly volatile crypto market.
To maintain its 1:1 peg to the US dollar, Paxos holds an amount of US dollars equal to the total supply of BUSD in FDIC-insured US banks. Hence the price and value of BUSD depends on the price of the US dollar: when the U.S. dollar gains or loses value, BUSD also gains or loses value in equal amounts.
- 1 BUSD = 1 US dollar
- To maintain BUSD’s 1:1 peg to the US dollar, Paxos holds an amount of USD equal to the total supply of BUSD in FDIC-insured US banks. BUSD is backed by reserves held in cash and U.S. treasury bills.
- Stablecoins play a crucial role in the crypto space. They act as a bridge between fiat currency and cryptocurrencies. Stablecoins also alleviate the effects of volatility inherent in cryptocurrencies.
What determines the price of BUSD?
The price of BUSD is determined by the price of the US dollar. As a USD-denominated stablecoin, BUSD maintains a U.S. dollar peg: one BUSD is equal to the USD.
Because BUSD is hard-pegged to the US dollar, the price of BUSD depends on the price of the US dollar. When the U.S. dollar rises or falls in value, BUSD also gains or loses value in equal amounts.
BUSD price prediction
Although BUSD is hard-pegged to the US dollar, there are times when the price of BUSD moves slightly lower than that of USD. When this happens, arbitrage traders will buy BUSD to benefit from the slight price difference.
This buying activity increases the demand for BUSD and drives the price up to 1 USD. This incentive system also helps BUSD maintain its 1:1 peg to USD.
For example, say the price of BUSD drops to $0.98, arbitrage traders will load up on BUSD. This buying activity will drive the price up to 1 USD.
When this happens, arbitrage traders profit from the price difference. For example, if you buy 1000 units of BUSD at $0.98 per unit (which would cost you $980 at the time of purchase), you will make a profit of $20 when you convert your BUSD tokens to fiat (USD).
The Paxos platform allows arbitrage traders to convert BUSD tokens into fiat and vice versa.
BUSD price history
Since BUSD is simply tokenized dollar, it represents the US dollar on a blockchain. This means that it has the same value as USD and can be exchanged for USD 1:1.
Because it is also fully backed by actual dollars, its price movement follows that of US dollars. BUSD’s price action in relation to the dollar has been a pretty tight one. For most of its history, this relationship has had little to no disparities.
Although there are times when there is a slight difference in price, it is mostly 1:1.
Who are the founders of BUSD?
BUSD was launched in 2019 – the product of a collaboration involving top-tier cryptocurrency exchange, Binance, and blockchain infrastructure platform, Paxos.
The goal of the partnership was to create a fiat-collateralized stablecoin fully backed by US dollars and subject to government regulation. One of the main objectives was to increase trust in cryptocurrencies.
Since launching in 2019, BUSD has grown by leaps and bounds becoming one of the most popular stablecoins and an integral part of the Binance ecosystem. It has also spun off a number of utilities from trading to lending.
Today, BUSD plays an integral role in the Defi ecosystem providing a seamless global network that facilitates speedy transactions at scale as well as reducing the risk of volatility inherent in crypto.
How does BUSD work?
BUSD is hard-pegged to the US dollar. It is issued by Paxos on the Ethereum blockchain and backed by US dollars and U.S. treasury bills.
For every BUSD in circulation, there’s a dollar backing it. This means that one BUSD can be exchanged for one dollar.
To maintain its 1:1 peg to the US dollar, Paxos holds an amount of US dollars equal to the total supply of BUSD in FDIC-insured US banks.
Although there are times when the price of BUSD moves slightly lower than that of USD, the activity of arbitrage traders looking to profit from the price difference quickly sends the price back up to the 1:1 status.
What is BUSD used for?
Besides being a convenient way to send and receive money, BUSD can also be used to pay for goods and services to merchants that accept it.
It also plays an integral role in the decentralized finance ecosystem allowing users to de-risk from volatile assets without moving off the blockchain.
It is also a cheap way to transfer money across the globe. With little fees, you can make easy and speedy transfers around the globe and pay less in transaction costs.
You can save or stake BUSD for a set period of time in exchange for a reward. You can also transact with BUSD and trade BUSD pairs for zero fees in the Binance ecosystem.
What’s more, you can deploy BUSD to a wide range of Defi services.
What makes BUSD unique?
As tokenized dollar, BUSD is much easier, faster, and cheaper to send than actual dollars. You can even enjoy zero fees if you are using BUSD in the Binance ecosystem.
What’s more, BUSD is fully backed by the US dollar. This means that for every BUSD in circulation, there’s a dollar backing it. This also means that you can exchange your BUSD tokens for US dollars at any time.
Since BUSD allows you to hold a token that represents the US dollar and has the same value as USD, it can be a great option for those that want to hold US dollars but can’t access it.
Other benefits include:
- Zero maker fees on all BUSD trading pairs.
- Zero fees for withdrawing BUSD on BEP20 Binance Smart Chain.
- Zero transaction fees for BUSD trading pairs.
- Earn passive income by saving or staking BUSD on Binance.
How is BUSD secured?
Like other cryptocurrencies, BUSD is secured by blockchain technology. A blockchain is a decentralized network that controls the issuance of cryptocurrencies and facilitates transactions.
At the heart of a blockchain is a decentralized public ledger that is highly secure and censorship-resistant.
Paxos uses blockchain technology to offer its stablecoin-as-a-service product to external companies like Binance.