Binance USD (BUSD) is a stablecoin developed in collaboration between Binance and Paxos, pegged at a 1:1 ratio to the US dollar. It is an approved and regulated stablecoin, backed entirely by fiat reserves and US Treasury bills, making it a reliable digital asset for investors.

Launched on the Ethereum blockchain, BUSD offers the benefits of blockchain-based cryptocurrencies without the extreme price volatility in leading cryptos like Bitcoin and Ethereum. This stability makes BUSD an excellent choice for transactions, payments, and settlements, and it also finds applications in the decentralized finance (DeFi) ecosystem.

As of September 2023, BUSD is the fifth most popular stablecoin in the overall cryptocurrency market based on market capitalization, trading volume, and circulating supply. With over 3 billion coins in circulation, BUSD is a popular means of digital payment used by various businesses and individuals worldwide.

Following regulatory concerns, Binance announced that it will phase out support for Binance USD (BUSD) stablecoin by February 2024. The exchange will gradually end support for BUSD products on its platform and has advised its users to convert their BUSD holdings to First Digital USD (FDUSD) - a stablecoin issued by Hong Kong-based First Digital.

BUSD is a fiat-collateralized stablecoin, fully backed by reserves held in fiat currency and US Treasury bills in dedicated omnibus accounts at insured banks across the US. This 1:1 peg to the US dollar makes BUSD fully redeemable and highly liquid, instilling confidence in investors. Monthly audits of its reserves are conducted by Paxos, ensuring transparency and credibility.

Issued on the Ethereum and BNB Chain networks, BUSD facilitates global payment transfers almost instantly with low transaction costs, providing a more efficient, transparent, and affordable alternative to remittances and conventional international transfers.

With no fees, you can acquire BUSD or convert it back to USD on Binance or Paxos platforms. However, charges may apply when performing bank or wire transfers to their accounts.

Binance USD (BUSD) was launched in September 2019 through a partnership between Binance and Paxos. As part of Binance's Venus project, aiming for mainstream adoption of digital currency payments, BUSD became the first stablecoin established by the crypto exchange. Paxos, a regulated blockchain infrastructure platform, issues BUSD and its other stablecoin, Pax Dollar (USDP).

As a regulated financial institution by the New York State Department of Financial Services (NYDFS), Paxos provides a robust and secure infrastructure for tokenizing real-world assets, such as the US dollar and gold.

The BUSD ecosystem has expanded significantly, with numerous wallets, payment platforms, services, top cryptocurrency exchanges, DEXs, and DeFi lending and yield farming platforms supporting BUSD. It has become a go-to choice for new investors, offering a stable, price-stable way to manage crypto portfolios and generate passive income.

If you're looking for a non-volatile and price-stable asset to include in your investment portfolio, Binance USD (BUSD) is an interesting option. As a stablecoin founded in collaboration between Paxos and Binance, BUSD ensures minimal price fluctuations, even during high uncertainty and volatility in the cryptocurrency market. This stability makes it a convenient base currency for holding or trading against other assets.

Binance USD presents an attractive opportunity. Its price-stability mechanism guarantees that the value of BUSD remains pegged to the US dollar, regardless of market conditions. As a result, BUSD is safe to use for staking, lending liquidity, and yield farming. While there may be momentary and slight fluctuations, the price remains pegged to the US dollar, providing a low-risk exposure for investors who want to trade cryptocurrencies.

The popularity of Binance USD as a base currency for trading crypto assets makes it an excellent digital asset to invest in. Trading cryptocurrencies against BUSD on Binance can lead to trading fee discounts and greater trading flexibility, attracting traders and investors alike.

Binance USD is fully collateralized with actual cash and cash-equivalent reserves, with a current reserve report from Paxos confirming that these reserves back 100% of BUSDs market capitalization. This level of transparency and accountability instills trust among investors and sets BUSD apart as a reliable stablecoin.

With its solid backing by dollar reserves, BUSD offers a secure and trustworthy crypto asset for traders and investors. It has gained popularity due to its stability and easy redemption process.

Being issued on the Ethereum and BNB Chain networks, BUSD enables fast and cost-effective global payment transfers, making it an attractive option for users seeking efficient cross-border transactions.

BUSD serves several essential functions, making it a popular choice among traders and investors in the crypto market. Here are some of Binance USDs use cases:

Base Currency For Trading Cryptos

BUSD is a base currency for trading other digital assets on Binance and other supported platforms. With various trading pairs on Binance, you can buy or sell other cryptocurrencies against BUSD to take advantage of trade opportunities and grow your crypto portfolio.

Additionally, Binance provides trading fee discounts for users trading with BUSD, enhancing the appeal for traders.

Buy Goods and Services Online

Binance USD can be a payment option for purchasing goods and services online. Numerous businesses accept BUSD as a payment method, providing users with a convenient and efficient payment solution using the ERC-20 token version of BUSD.

Hedge Against Market Volatility

Investing in BUSD offers an excellent hedge against the market's high volatility. When market conditions become uncertain or volatile, converting your crypto holdings to BUSD can help safeguard your portfolio from steep losses, providing a stable and reliable value for your assets.

Send and Receive Digital Payments Globally

Transacting with Binance USD allows for fast, low-cost, transparent global payments. BUSD's digital nature enables near-instant settlements, making it a more convenient alternative to traditional international transfers using fiat currencies and centralized financial systems.

Earn Passive Income

Binance USD presents opportunities for passive income generation in the crypto market. Various centralized and decentralized platforms support staking, yield farming, and lending of BUSD, enabling users to earn attractive returns and grow their portfolios safely.

Here are some ways to convert your Binance USD coins to US dollars:

Exchange BUSD on BYDFi

One popular method to convert BUSD to US dollars is through cryptocurrency exchanges that support fiat trading pairs, such as BYDFi. For instance, on BYDFi, you can trade BUSD for USDT on the Spot Trading page and then utilize the BYDFi P2P section to exchange USDT for USD and withdraw the funds.

Convert BUSD to USD on Paxos

Another option is creating an account on Paxos, which allows you to convert BUSD to USD or vice versa without incurring fees. However, it's important to note that you may encounter charges during international bank transfers or wire transfers when withdrawing USD from your Paxos account to your bank account.

Here's how you can send your BUSD tokens to MetaMask:

1. Begin by creating a MetaMask account if you're new to the platform. Configure your MetaMask wallet settings and ensure that you've selected the Ethereum mainnet as your network (default setting).

2. Copy your unique MetaMask wallet address. This address will serve as your destination for transferring BUSD tokens.

3. To send BUSD tokens to MetaMask, you need to have them in your possession. Acquire BUSD tokens through platforms like BYDFi or other supported exchanges. Ensure that you follow secure purchasing practices.

4. Log in to your trading account on BYDFi or other supported platforms where you acquired BUSD tokens. Initiate a withdrawal and provide your MetaMask wallet address as the destination. Double-check the accuracy of the address to prevent any errors.

5. If you're dealing with BEP-2 BUSD tokens, follow the above steps. However, ensure that your MetaMask network is configured for the Binance Smart Chain (BSC) by accessing the Settings and adding the BSC network.

Trust Wallet's Swap feature provides a convenient method to convert your cryptocurrency holdings directly within your wallet. Here's a step-by-step guide on how to convert Binance USD (BUSD) to Binance Coin (BNB) in Trust Wallet:

1. If you're new to Trust Wallet, create an account and set up your wallet. Ensure that your wallet contains enough BUSD tokens for the swap.

2. Launch the Trust Wallet app and go to the DEX (Decentralized Exchange) section. You can access the Swap feature from there.

3. Within the DEX section, find and click on the Swap button to start the process of converting one cryptocurrency to another.

4. In the Swap interface, you'll need to select the tokens for the swap. Choose Binance USD (BUSD) as the token you want to exchange and select Binance Coin (BNB) as the target token.

5. Enter the quantity of BUSD tokens you want to swap. Double-check all the details for accuracy. Once you're satisfied, click on the Confirm button to proceed.

6. Trust Wallet will display a confirmation screen summarizing the swap details. Carefully review the information, and if everything is correct, click on the Swap button to continue.

7. After confirming the swap, the transaction will be processed. The duration may vary depending on network conditions, but Trust Wallet will provide status updates throughout the process.

8. Once the swap is successfully processed, your BUSD tokens will be exchanged for BNB in your Trust Wallet. To verify the completion of the swap, you can check your wallet's transaction history.