Binance Gets NY Financial Services' Nod for Its USD-Pegged Stablecoin

Global crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Binance has received approval from the New York State Department of Financial Services (NYDFS) for its USD-pegged Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term BUSD.

Announced today on Twitter, this will enable New York residents to “purchase, convert, and trade” the stablecoin against the USD.

$BUSD - #Binance's USD-backed stablecoin approved by the New York State Department of Financial Services (NYDFS).

Purchase, convert and trade! ?https://t.co/20EjHHfVAh pic.twitter.com/jQUaaffBuP — Binance (@binance) January 6, 2020

The approval from the state regulator gives the crypto exchange an edge over its local competition in the country to penetrate into a tough yet lucrative market with numerous stablecoin-based services.

Stablecoin - a proxy to fiat

Binance launched its USD-pegged token last year and listed many tokens against it on its multiple exchange platforms. For the stablecoin, the exchange partnered with fiat-pegged coin issuer Paxos.

To attract users for the coin, the Malta-registered exchange is offering no additional trading cost with it, excluding the mandatory bank and wire transfer charges. It also enabled the purchasing of the token with other stablecoins, including USDT, USDC, TUSD, and Paxos-issued PAX. In addition, the coin is supported on both ERC-20 and BEP-2 standards.

This announcement came when the crypto exchange is aiming to expand its fiat-based services around the globe. It recently introduced trading pairs against the euro for its customers in Europe, but this is only the beginning as its CEO Changpeng “CZ” Zhao is aiming to enable trading with over 180 fiats by the end of this year.

Though Binance’s services were confined with crypto-to-crypto trading in the US, the exchange last year partnered with a local entity to form a new entity in the country - Binance US - offering fiat-based services. The new platform, however, was not serving the New York residents initially as the exchange did not receive BitLicense from the NYDFS.