Binance USD (BUSD) is a stablecoin that provides hedging against the volatility of cryptocurrency, backed with U.S. dollars in a 1:1 ratio held in FDIC-insured U.S. banks. Binance USD is issued by Binance in partnership with Paxos, the issuer of BUSD and USD custodian for BUSD. BUSD is both approved and regulated by the New York State Department of Financial Services (NYDFS). An audit report on BUSD is published monthly to add transparency and confidence to the security and stability of BUSD. BUSD runs on both the Ethereum blockchain as an ERC-20 token and the Binance Chain blockchain as a BEP-2 token. BUSD can be issued and redeemed without additional fees and can be used on a variety of centralised, custodial exchanges such as Binance and Binance US with trading discounts.