The Financial Department of Financial Services (NYDFS) in New York City has announced that it has granted a license to banks in the New York to list Binance USD.
NYDFS told banks that they can now start using the stablecoins without approval. In his statement, the firm noted that even though the banks have been allowed to list the asset, they must still give the regulatory body notification before using it.
Furthermore, they have said that financial outfits can now go ahead and list it at their time.
Banks can start listing Binance USD, NYFDS confirms
According to Binance, they have already finalized talks with the NYFDS so firms around the state to list their digital asset, but they just needed to complete some paperwork to list the coin.
If JP Morgan announces tomorrow that it wants to start to list the stablecoin, they can do so. Binance announced that it teamed up with a New York-based outfit, Paxos, to develop its coin, Binance USD (BUSD).
Talking about the partnership, Binance CEO, Changpeng Zhao said:
This is a good one for the company, and presently, we are working to embark on more projects on blockchain technology.
Binance USD reaches a $1 billion market cap
Presently, the crypto population in New York who wishes to buy the Binance USD inside or outside the United States of America can do so at a price equivalent to the dollar.
The global crypto population can purchase the BUSD as it is available on Binance exchange.
Around the second week of March, Paxos announced that the market capitalization of Binance USD has skyrocketed to $115 million, which puts it in the first position in traded stablecoin on its website. In 265 days after the launch, Binance announced that the BUSD recorded a market capitalization of $1 billion.
Short background on stablecoins
Stablecoins are cryptocurrencies that are created with the purpose of minimizing the volatility experienced in the crypto market. These coins are pegged to the value of FIAT currencies, such as the US dollar and the British pound, or other assets and commodities, such as gold and silver.
In the volatile world of crypto, stablecoins are the safehouse to “lock” one’s profits. The investors of stablecoins make money by receiving dividends from the newly issued coins being given to them for holding the stablecoin’s shares.