Binance pegs BUSD to TRON
Binance’s pegged BUSD is now available on TRON.
After Paxos issued BUSD on the Ethereum blockchain, Binance anchored BUSD (the packaged version of BUSD provided by Binance) and then expanded the scope of blockchain network support to include the TRON network.
You can now use Binance to peg BUSD on networks such as BNB Chain, Avalanche, Polygon, and TRON.
Because multiple chains support Binance to anchor BUSD, traders can transfer USD-backed stablecoins on different platforms, which is not only fast but also safe.
Now, all users can use native Binance to anchor BUSD and explore the TRON ecosystem, which is not only safer but also more efficient.
BUSD is issued by Paxos on Ethereum and is regulated by the New York State Department of Financial Services (NYDFS). Binance provides a pegged token service, that is, lock BUSD on Ethereum and issue an equivalent amount of Binance-pegged BUSD on other networks (BNB Chain, Avalanche, Polygon, TRON, etc.).
Binance-pegged BUSD is a product of Binance, not issued by Paxos and not regulated by NYDFS.
TRON is a public blockchain that aims to become the core infrastructure of the decentralized Internet.
The chain was founded in September 2017 by HE Justin Sun. Its mainnet went live on May 31, 2018.
The principle of TRON is the Delegated Proof of Stake (DPoS) mechanism, in which 27 super representatives are set up to verify blocks and transactions, and the representatives rotate every 6 hours.
Since its launch, TRON has become the most widely used programmable blockchain in decentralized applications and has developed rapidly in recent years.
It has more than 129 million users on the blockchain, and the transaction volume exceeds 4.4 billion times, and the momentum is still growing.
TRX (Tronix) is a TRON mainnet token based on the TRON protocol.
TRX is the basic accounting unit of the chain, and the value of all other tokens comes from TRX.
TRX was originally minted on Ethereum, but it was transferred to the Tron protocol after the mainnet was launched in 2018.
It is open for supply and users are rewarded by participating in the voting system of the TRON network.
In addition, users can also use TRX to create DApps and smart contracts, and access the ecosystem of DeFi projects.
Interpretation of BUSD and Binance’s Pegged BUSD
BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar.
The BUSD stablecoin issued by Paxos and its reserves are strictly regulated by the New York State Department of Financial Services (NYDFS).
BUSD is backed by one or both of the following reserves: (i) fiat cash insured in U.S. bank dedicated omnibus accounts; and/or (ii) U.S. Treasury bills (including through repurchase agreements and/or money market funds investing in U.S. Treasury bills) ).
Binance-pegged BUSD is an independent product that is neither issued by Paxos nor regulated by the New York State Department of Financial Services (NYDFS).
Binance independently mints Binance-pegged BUSD on other blockchains (eg, BNB Chain, Polygon, Avalanche) and pegs tokens 1:1 to BUSD.
In this way, holders of these two tokens on the Binance platform can exchange tokens between Ethereum and other blockchains.