Here we’ll have a deeper look at Binance USD (BUSD) – fiat-backed stablecoin that was the first to receive regulatory approval from the New York State Department of Financial Services.The debut of stablecoins into the financial market is a significant breakthrough in the crypto industry. Building a bridge between traditional financial assets and volatile lucrative crypto space, stablecoins are rapidly changing the way the world sees digital finance. Serving as digital assets capable of holding value in real-world currency, stablecoins protect investors’ assets from the volatility of the crypto market.Stablecoins achieve price stability by maintaining their value via various mechanisms. Fiat-collateralized, commodity-backed (pr asset-backed, crypto-collateralized, or algorithmic supply – all these kinds of stablecoins have seen widespread acceptance and adoption.Here we’ll have a deeper look at Binance USD (BUSD) – fiat-backed stablecoin issued by Paxos in partnership with Binance.Binance USD OverviewBinance USD, or BUSD, is a revolutionary collateralized stablecoin tied to the U.S. dollar at a 1:1 ratio. Similar to other stablecoins, BUSD was created to provide ease of transaction over decentralized finance (DeFi) ecosystems. The coin was the first and one of three stablecoins to receive regulatory approval from the New York State Department of Financial Services (NYDFS). It is easy to buy and trade it over several platforms in the U.S.BUSD is an ERC-20 token that supports BEP-2. It is stored across several Paxos reserves globally. The token was designed as an ERC-20 token in order to reach more platforms, as ERC-20 is interoperable with several blockchains. And a further reach is achieved with profitable partnerships.BUSD LaunchBUSD is the brainchild of Binance and Paxos. It appeared as a result of their partnership they announced on September 5, 2019. Before its debut, the token received regulatory approval from the NYDFS. It became eventually available for purchase with Paxos USD on September 12, 2019, before launching on the Binance platform in trade with Ripple (XRP), Bitcoin (BTC), and the Binance Coin (BNB) on September 20, 2019.BUSD met positive reception from the community and soon expanded its trade to 48 different USD pairs. Since its launch, the token has performed remarkably well, maintaining its intended 1:1 ratio with the U.S. dollar. Withum, an accounting firm that performs the audits and displays them on the NYDFS website in compliance with the NYDFS regulation framework, conducts an audit for BUSD every month.Technology Behind BUSDBinance wanted to build the first stablecoin truly collateralized by the US dollar, with access to U.S. dollars that Paxos holds and US banks create and manage. With the BUSD, they made this possible.The first feature of Binance USD is a deflationary mechanism that maintains each BUSD token at a 1:1 ratio with the U.S dollar. For example, whenever 100 BUSD is bought, 100 BUSD is created for the purchase, and a $100 payment is added to Paxos reserve accounts. Whenever someone sells (redeems) a 100 BUSD on the market, the $100 payment is taken from Paxos reserve accounts. The received 100 BUSD are then burned out of the system.The BUSD token also works with several ERC-20 smart contracts. These smart contracts provide trustless security for the BUSD. In addition, BUSD uses this feature to ease interoperability among any wallet or exchange that supports Ethereum.Users should be aware that BUSD fully complies with the NYDFS regulatory framework. Using a revolutionary new function called “SetLawEnforcementRole” allows Paxos to restrict and control funds that move through accounts that run afoul of the NYDFS regulatory framework. While this may seem against the decentralization principles of crypto, the feature will only affect criminal or fraudulent accounts while protecting user accounts from hacks.Use Cases of BUSDAs a stablecoin, Binance USD has numerous use cases, playing vital roles in digital transactions and DeFi systems.Firstly, you can trade BUSD with over 48 currency pairs, each has a dollar value and is available anywhere in the world. Users will find an alternative to fiat currencies in it, as they can exchange it at a 1:1 ratio with the dollar. With almost zero fees, the coin makes an excellent alternative for any currency anywhere, anytime in the world.Secondly, BUSD’s versatility is not limited to real-world assets. You can exchange it instantaneously for other popular stablecoins on a 1:1 basis without fees as well. And as an ERC-20 token, BUSD has interoperability with several platforms and can be easily integrated with several DApps and smart contracts.Furthermore, with BUSD, users can earn money either passively or actively. Users can store BUSD in wallets and hold it, hedging their bets against the volatility of the accumulated digital assets, or they can trade with it on the Binance market.Binance continues to build new features into the BUSD coin. It is increasing versatility with features like Binance Margin Trading that allows BUSD to be used as collateral against loans. The addition of several lending products is enabling users to deposit BUSD and earn up to 15% annual interest.Advantages of BUSD over Other StablecoinsBUSD remains one of the few regulated crypto tokens out there on the market. And its partnership with Paxos, a trusted name in the crypto space, implies a dedication to building a genuinely secure and regulated token for the crypto space.Regulation is already a long-awaited though hotly contested development in the crypto world. With the strict regulatory frameworks in most countries, crypto platforms and services often have a hard time getting regulation. Meanwhile, BUSD proves itself by receiving approval from the NYDFS, one of the most infamously strict regulatory bodies in the world.ConclusionBinance and Paxos have genuinely outdone themselves and perhaps everyone else on the stablecoin market with the creation of Binance USD (BUSD). The transparency and security ensured by its regular audits and the NYDFS regulatory framework make it the obvious choice for most crypto enthusiasts and newcomers just getting to know the market.But transparency and security aren’t the only attractions offered by Binance’s BUSD. The token has maintained price stability, is regularly and openly audited, and is highly scalable. It can be transferred between Ethereum and Bitcoin blockchains and is supported by Binance and Paxos, two of the biggest crypto names, ensuring continual market domination.The exponential growth experienced by BUSD is only expected to continue. With the several features it already provides, BUSD has proven itself a market leader and model stablecoin, providing users with a safe alternative to most stablecoins. With many more developments planned, it is evident that Binance’s BUSD is a winner.