Global crypto exchange Binance has received approval from the New York State Department of Financial Services (NYDFS) for its USD-pegged stablecoin BUSD.
Announced today on Twitter, this will enable New York residents to “purchase, convert, and trade” the stablecoin against the USD.
$BUSD – #Binance's USD-backed stablecoin approved by the New York State Department of Financial Services (NYDFS).
Purchase, convert and trade!
— Binance (@binance) January 6, 2020
The approval from the state regulator gives the crypto exchange an edge over its local competition in the country to penetrate into a tough yet lucrative market with numerous stablecoin-based services.
Stablecoin – a proxy to fiat
Binance launched its USD-pegged token last year and listed many tokens against it on its multiple exchange platforms. For the stablecoin, the exchange partnered with fiat-pegged coin issuer Paxos.
To attract users for the coin, the Malta-registered exchange is offering no additional trading cost with it, excluding the mandatory bank and wire transfer charges. It also enabled the purchasing of the token with other stablecoins, including USDT, USDC, TUSD, and Paxos-issued PAX. In addition, the coin is supported on both ERC-20 and BEP-2 standards.
This announcement came when the crypto exchange is aiming to expand its fiat-based services around the globe. It recently introduced trading pairs against the euro for its customers in Europe, but this is only the beginning as its CEO Changpeng “CZ” Zhao is aiming to enable trading with over 180 fiats by the end of this year.
Though Binance’s services were confined with crypto-to-crypto trading in the US, the exchange last year partnered with a local entity to form a new entity in the country – Binance US – offering fiat-based services. The new platform, however, was not serving the New York residents initially as the exchange did not receive BitLicense from the NYDFS.