Binance, one of the world’s largest cryptocurrency exchanges, offers a variety of stablecoins to its users.
Stablecoins are a type of cryptocurrency designed to minimize price volatility by pegging their value to a more stable asset, such as a fiat currency (like the US Dollar) or a commodity (like gold). This allows them to function as a bridge between the crypto world and traditional finance, offering price stability while retaining the benefits of blockchain technology, [according to Binance].
Binance supports a range of stablecoins, including popular options like USDC and FDUSD. Previously, Binance also supported Binance USD (BUSD), a US dollar-backed stablecoin issued by Paxos. However, due to regulatory issues, Paxos was ordered to cease minting new BUSD tokens in February 2023, and Binance subsequently announced it would end support for BUSD, [according to CryptoRank] . Binance began converting remaining BUSD balances to FDUSD (First Digital USD) in December 2023.
- Market Stability: Stablecoins help mitigate price volatility, providing a reliable store of value during market swings.
- Efficient Transactions: They offer fast settlement times and low fees, making them suitable for payments, remittances, and global transfers.
- DeFi Utility: Their stable value makes them ideal for lending, borrowing, and other decentralized finance applications.
- Accessibility: Stablecoins act as a fiat-linked gateway into the world of crypto, particularly for newcomers.
Despite the discontinuation of BUSD, Binance remains committed to providing its users with a diverse selection of stablecoins. The platform continues to expand its offerings, with recent additions such as StraitsX USD (XUSD) and Eurite (EURI), a EURO-backed stablecoin. These integrations are designed to enhance the user experience, provide deep liquidity across major trading pairs, and facilitate efficient portfolio management through stable, fiat-pegged assets.
Does Binance have a stable coin?
Binance USD (BUSD) was a US dollar-pegged stablecoin issued by Paxos on the behalf of Binance.
Is it worth buying a stable coin?
I can help with that. Some argue that stablecoins are unnecessary because the U.S. dollar is widely accepted. Others believe digital currencies not controlled by central banks are the future. With that in mind, four types of stablecoins, based on the assets used to stabilize their value, have been created.
Is USDC or USDT better?
Good point! Choose USDT if you need maximum liquidity and exchange pairs. Choose USDC if you prefer stricter oversight and clearer reserve reporting. Many traders hold both to manage listings, DeFi yields, and counterparty risks.