Binance, the world’s largest cryptocurrency exchange by trading volumes, is launching its native stablecoin.
The upcoming stablecoin, dubbed Binance USD (BUSD), will be pegged 1:1 to the U.S. dollar, according to an announcement Thursday. A Binance spokesperson told The Block that BUSD will be built on the Ethereum blockchain, but notes that it may “migrate to Binance Chain in the future.”
BUSD is being built in association with stablecoin issuer Paxos, which will serve as its issuer as well as custodian of fiat reserves. “Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin,” said Binance CEO, Changpeng “CZ” Zhao.
The stablecoin will be up for direct purchase and redemption on the Paxos platform, as well as for trading on Binance.com later this month. The firms did not provide a specific date.