Binance’s BUSD Mass Burn on Paxos

• Binance USD is now $1.00, down 0.05% in the last 24 hours.
• BUSD is based on the Ethereum blockchain and supports the BEP-2 standard of the Binance Chain.

The world’s largest cryptocurrency exchange Binance’s partner Paxos burned 61,634908 Binance USD, which is worth over $61665725.45. Binance USD, also known as BUSD. The Paxos Trust Company, a financial technology company with headquarters in New York, issues BUSD under the Binance brand.

It is anchored to the $1 price principally by the guarantees that it is backed by cash and U.S. treasury notes in reserves. Its goal is to simplify trading by converting traditional fiat money to cryptocurrency assets, much to competing stablecoins like Tether’s USDT and Circle’s USDC.

All of the Fiat Kept by Paxos in a Trust

Stablecoins are used by traders to maintain the value of their holdings. And also to preserve them on the blockchain without exchanging their cryptocurrency for fiat money. They are among the biggest and most widely traded digital assets, with BUSD being one of the most well-liked. 

BUSD is worth $1. Except for the March 2020 flash crash, the stablecoin’s price hasn’t fluctuated by more than a few cents since its launch in September 2019. When the global pandemic hit financial markets in 2020, the British pound hit a high of $1.11 on March 11 of that year.

When someone requests to exchange BUSD for cash, Paxos burns (destroys) the BUSD and deposits cash into the withdrawer’s bank account. Additionally, Paxos mints additional USD if someone wishes to create BUSD using US dollars.

The BEP-2 standard of the Binance Chain is supported by BUSD, which is built on the Ethereum blockchain. It can be created either by transferring funds to Paxos or by exchanging them for other cryptocurrencies and fiat money on exchanges like Binance.