This article was originally published here.
The top crypto exchange highlights the Binance USD backed stablecoin (BUSD) being approved by New York’s State Department of Financial Services (NYDFS). Although it has been approved since launching in partnership with Paxos, this is a reminder to traders that during volatile swings in prices, there is a zero-fee option to jump out of Bitcoin or Altcoins into a stablecoin. Bitcoin jumped more than $500 yesterday. If traders timed it right, they could sell-off at the top and jump into BUSD to preserve their gains when prices started dropping again.
The exchange made this announcement through their twitter handle noting that users will be able to purchase, convert and trade the BUSD coin using the U.S dollar. Binance has an upper hand against stablecoin rivals following this approval, in 2019 the exchange launched its U.S subsidiary but had yet to obtain the required Bitlicense for operations in New York.
Purchase, convert and trade!
— Binance (@binance) January 6, 2020
The BUSD Cutting Edge
According to a post on Jan 6, Binance USD coin is set to scale its operations given the green light by NYDFS. As it stands, the token can be traded against other stablecoins like TUSD, USDC and the USDT. These will be the avenues to trade other cryptocurrencies through the legally accepted BUSD coin.
With Paxos as the fiat partner facilitating BUSD trade against the U.S dollar, Binance plans to on-board more users with various incentives. The Malta-based exchange charges nothing apart from bank and wire costs to clients who use the BUSD coin for trading. In addition, the coin is BEP-2 and ERC-20 compliant, a feature that makes its ecosystem trustworthy besides the 1:1 USD backing ratio.
The State of Crypto Operations in New York
New York has emerged as a hot crypto market since the bull run of 2017. However, over time it has become harder for crypto-oriented businesses to operate within this state especially with the introduction of a Bitlicense. It therefore follows that crypto-based shops in New York operating legally appear to have more credibility for their products.
Binance which recently joined the legal bandwagon through the BUSD coin is looking to bump up their market share in the U.S generally. This global crypto exchange led by famous ‘CZ’ is clearly liquid given the cost of applying for a Bitlicense is at $5,000 with a probable recurring fee of $100,000.