BUSD
Crypto Overview
Overview
BUSD was a USD-pegged stablecoin issued by Paxos Trust Company and branded by Binance. However, in February 2023, following regulatory pressure from the SEC, Paxos announced it would stop minting new BUSD tokens. The token is being phased out, with Paxos continuing to honor redemptions of existing tokens until at least February 2024.
Intended Utility
BUSD was designed as a regulated stablecoin for trading, payments, and storing value, maintaining a 1:1 peg with the US dollar. Each BUSD token was backed by US dollars held in FDIC-insured bank accounts and US Treasury bills.
Actual Utility Assessment
Prior to its phase-out announcement, BUSD was widely used on Binance's exchange and various DeFi platforms. The token achieved significant adoption as one of the major stablecoins in the cryptocurrency ecosystem. However, current usage is declining as users migrate to alternative stablecoins.
Founder Enrichment Analysis
BUSD operated under strict regulatory oversight by the New York Department of Financial Services. The token distribution was transparent, with all tokens being backed 1:1 by USD reserves. Regular attestations were provided by independent accounting firms to verify the backing of reserves.
Technical Implementation
BUSD operates as an ERC-20 token on the Ethereum blockchain, with additional versions on other networks like BNB Chain. The smart contracts have been audited by multiple security firms.
Crypto Impact
To assign a comfort level investing in BUSD from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to BUSD.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.