BUSD, Binance's U.S. dollar-backed stablecoin, has been listed on Coinbase, one of the largest exchanges in the U.S. and globally. The listing will see BUSD open for access by Coinbase users and traded through the Ethereum network as an ERC-20 token.
This listing is Coinbase' eighth for a stablecoin. To date, Coinbase currently supports Tether (USDT), USD Coin (USDC), TerraUSD (UST), Dai (DAI), Paxos Standard (PAX), Rai Reflex Index (RAI), and mStable USD (MUSD). Binance's BUSD stablecoin project was initially launched through the exchange's partnership with Paxos, a crypto custody firm which manages the stablecoin's dollar reserves. BUSD currently ranks 10th among the 172 assets that Coinbase has listed to date.
Despite this popularity, the launch of BUSD on Coinbase didn't go through as smoothly as it would have. Just hours after the listing, a number Coinbase users reported that they were unable to transfer BUSD from Coinbase to their wallets. This was because Coinbase took the prerogative to pause trading for BUSD due to the BUSD-USDT trading pair failing to meet certain liquidity metrics required by the exchange to continue trading. The exchange promptly resumed trading for the pair once the liquidity threshold was met.
Coinbase is a direct competitor of Binance, and the two exchanges have often been at odds. As Binance's stablecoin lists on its competitor's platform, the two exchanges will likely again be at odds but would expectedly work together to keep the liquidity flowing. Binance has been notorious for calling out Coinbase as the "exchange of choice" for Wall Street, while also calling itself the exchange for "all streets," aiming for a broader public appeal.
Binance's BUSD reserves as managed by Paxos have been fully audited and have been found to be compliant with the regulatory framework for stablecoins requiring a 1-to-1 ratio. Auditing firm Withum has examined both Paxos' Pax Dollar (USDP) and BUSD, vetting for the veracity of stablecoins' claims of being dollar-backed.
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