Binance recently announced the successful integration of $BUSD into the Avalanche and Polygon networks. Binancians (Binance’s user community) can now inter-transfer BUSD across the Ethereum, Smart Chain, Beacon Chain, Avalanche and Polygon networks.
Binance Expands Territories
To expand its ecosystem, Binance, the world’s largest cryptocurrency exchange, announced the integration of Binance’s stablecoin BUSD into the Avalanche and Polygon networks. The integration will allow Binance users to carry out deposit and withdrawal transactions across the Avalanche, Polygon and the BNB Smart Chain network (Binance’s blockchain network).
This comes as an expansion as Binance will now accommodate BUSD transactions between five different blockchain networks; Ethereum network, BNB Smart Chain network, Avalanche network, BNB Beacon Chain, and the Polygon network.
“Binance has completed the integration of Binance USD (BUSD) on the Avalanche and Polygon networks. Deposits and withdrawals for BUSD are now open on both networks. Users may transfer BUSD across the Ethereum, BNB Chain, Avalanche, and Polygon networks.” Binance stated in a post on the Binance official website.
The New Ecosystem
The BUSD- Avalanche and Polygon support will allow traders to explore the two ecosystems using the US dollar-pegged stablecoin. Binance is also planning to support more blockchain ecosystems using BUSD as part of its efforts to continue its expansion, growth and development.
In the same announcement post, Binance has also issued deposit addresses for the USD stable coin on the Avalanche and Polygon networks. The corresponding smart contracts issued by Binance were;
- BUSD (Binance-Peg) on Avalanche network: 0x9C9e5fD8bbc25984B178FdCE6117Defa39d2db39
- BUSD (Binance-Peg) on Polygon network: 0x9C9e5fD8bbc25984B178FdCE6117Defa39d2db39
The Binance stable coin BUSD is regulated by the New York State Department of Financial Services (NYDFS) and issued by the provider Paxos. According to Binance, the exchange provides the pegged token service by locking BUSD on Ethereum and issuing an equal amount of Binance-Peg BUSD on other networks as per the proof of assets given by the exchange.
Binance is pegged to the United States Dollar valuation in the ratio of 1:1. This makes BUSD fluctuate in value according to the fluctuating value of the US Dollar. The stablecoin is approved for trading by the New York State Department of Financial Services and any other licensed virtual currency issued by the Department.
Paxos, the BUSD provider, holds an equal number of US Dollars for every BUSD issued. Some of the US Dollar reserves maintained for this purpose are in the FDIC-insured US Banks.
Paxos issues BUSD on the Ethereum network, while Binance offers wrapped BUSD tokens on the BNB Smart Chain network.
Due to the solid tokenomics of BUSD and the outstanding cooperation between Binance and Paxos, BUSD has continued to perform well and earned a top spot among the most trusted stablecoins in the crypto space. Launched in 2019, BUSD has achieved immense growth with an outstanding market capitalization of more than $20 billion. BUSD currently ranks 3rd behind USDC and USDT stablecoins