BUSDUSDT
Binance USD / Tether USD
crypto Poloniex

Binance USD (BUSD) is a fiat-collateralized stablecoin that offers the advantages of transacting with blockchain-based assets while mitigating price risk. BUSD are issued as ERC-20 tokens on the Ethereum blockchain and are collateralized 1:1 by USD held in Paxos-owned US bank accounts. BUSD is also the one of three stablecoins approved by Wall Street regulators, alongside GUSD and PAX. Binance USD is fully collateralized 1:1 with USD in bank accounts, meaning that the total supply of BUSD is backed by a fiat held in reserve by Paxos. The requests for purchase and redemption of BUSD results in movement of cash in and out of the reserve, which in turn has the supplyController address mint and burn tokens accordingly. For example, purchase of $100 will result in issuance of 100 BUSD tokens and $100 being deposited into the reserve. On the other hand, redemption of 100 BUSD tokens results in destruction of those 100 tokens and withdrawal of $100 from the reserve to be given to the redeemer. As a resort to critical security threat, Paxos can pause transfer and approval of BUSD tokens via OpenZeppelin's contracts. Although the creation and destruction of the tokens occur through Paxos, other transactions in BUSD follow ERC-20 smart contracts. This ensures security for BUSD, as it gets rid of the need for third parties and instead relies on the long-tested global blockchain network. Additionally, trading tokens is simple with BUSD because viewing and transferring of BUSD is automatically supported by most Ethereum-supporting exchanges and wallet applications. Due to the Trust Charter, the New York State Department of Financial Services regulates and monitors the company and its operating procedures to make sure it follows New York banking laws. These banking laws also requires Paxos to have the power to freeze accounts as well as wipe the balance of said frozen accounts. BUSD has a function called "setLawEnforcementRole." As its name implies, it can give administrative permissions over the circulating BUSD supply. Paxos has assured that the function is for preventing illegal activities such as money laundering and terrorist financing and that it will not be used unless required by law.