The BUSD stablecoin was founded by Paxos and Binance to create a cryptocurrency that the US dollar would back. The function of BUSD is that one unit of BUSD is equivalent to one US dollar. To help this value, Paxos holds the amount of US dollars identical to the total supply of BUSD. The price of the stable coin fluctuates directly with the cost of USD. BUSD offers a monthly audited document of reserves in compliance with stringent regulatory standards to ensure the security and safety of user assets.
Because of its stability over the USA dollar, BUSD empowers investors and crypto users with the ability to transact with other digital and blockchain-based assets while minimizing the chance of volatility. Due to the nature of cryptocurrency, crypto holders may revel in volatile modifications in their portfolio value, and BUSD can help extensively hedge against periods of market volatility.
BUSD has performed well and established itself as a leader in the cryptocurrency area because of its intrinsic properties as a stablecoin. BUSD has served so well since its launch in 2019 that it is now an asset with a $10 billion market cap.
With a massive growth in crypto adoption in 2021 due to Bitcoin and altcoin price explosions, BUSD was adopted at unprecedented prices due to its reliability. Crypto innovations like Defi and NFTs have started to gain popularity – BUSD too.
With over a million people already keeping BUSD, it is clear that these early adopters believe the stablecoin and prefer using it for their Defi activities. BUSD is a bridge between traditional finance and Defi, presenting a new level of financial freedom that regular currencies or institutions don’t provide. In addition, stablecoins help protects their customers from threats like inflation and provide attractive APYs for Defi services. BUSD customers can take on yield farming and liquidity pools with extra financial protection from uncertainties than fiat-associated or crypto-heavy products.