Binance USD, a major stablecoin issued by the crypto exchange Binance, hit its market cap of $ 10 billion and entered the top 10 in digital currency rankings, the company confirmed in a blog post on July 15, 2021.
Binance USD has already passed $ 11 billion in market cap at the time of writing, according to data from CoinMarketCap.
The Binance team is happy to confirm that BUSD is now ranked 3rd among stablecoins in terms of market capitalization. In less than 2 years since its launch, BUSD has grown into “one of the fastest growing cryptocurrencies while offering a variety of utilities, from trading to lending and paying”.
Binance also explains that BUSD is “a secure and compliant 1: 1 USD-backed stablecoin issued by Paxos and approved by the New York State Department of Financial Services (NYDFS). “
While commenting on some of the “advantages” of the Binance ecosystem (which include a “diverse” portfolio of crypto products and services as well as some of the lowest trading fees in the industry), the exchange says it has played a ” crucial role in BUSD’s initial breakthrough, which resulted in an increase in market capitalization from $ 30 million at the start of 2020 to $ 1 billion at the end of 2020. “
Binance further reveals:
“Users chose BUSD for a combination of reasons, including stablecoin’s strict compliance standards, a wide range of use cases, and support for a diverse set of yield products. Market cap grew from $ 1 billion to $ 10 billion in less than six months, making BUSD the second-largest asset in terms of market capitalization on Binance Smart Chain (BSC), as well as the number one in terms of locked-in value. total (TVL). ”
Binance further reveals that BUSD was the ‘most used stablecoin on BSC’. The company added that BUSD had managed to achieve this growth “in record time, exceeding the efforts of competitors by 100 days.”
While sharing some key BUSD milestones, Binance noted:
- July 15, 2019. Launch of BUSD (first batch issued)
- March 10, 2020. Market capitalization milestone 100M
- August 6, 2020. Listed on NYDFS Approved Green List
- January 1, 2021. $ 1 billion market capitalization milestone
- June 28, 2021. Market capitalization milestone of $ 10 billion
(Note: For more details on this update from Binance, click here.)
Binance CEO Chengpeng Zhao recently shared a letter reflecting on the company’s progress and their way forward.
Chengpeng Zhao or CZ writes that when Binance was launched about 4 years ago, the crypto industry was “still in its infancy – with few early adopters and no clear standards.”
He adds that in a relatively short period of time, the crypto space has “drastically grown and evolved: there are now more crypto offerings, an increasing number of first-time crypto users, and many more. attention and debate on how the crypto industry should advance. “
“Given the recent hyper-emphasis on regulation when it comes to Binance, I would like to take this opportunity to share our history and principles, clarify our position and commitment, and present our approach and plans in this area. regulation and sustainable development of the crypto industry in the future.
Before clear guidelines existed for the industry, CZ says Binance has always stood “at the highest level to put the best interests of our users first – a goal we share with regulators around the world.”
“We have requirements for the use of our platform and established industry standards: strict policies on insider trading (no active trading of an asset within 30 days), a fund Emergency Secured Asset (SAFU) to protect user assets and stringent listing standards and a firewall to separate the SEO team.
He confirmed :
“We also invested early in educational resources through tutorials and Binance Academy to help users from all walks of life make informed decisions about crypto. For higher risk products, we set limits and protections to encourage responsible trade. “
CZ further states:
“We are also protecting our users through our work with law enforcement agencies such as the US Internal Revenue Service (IRS), the South East UK Regional Organized Crime Unit. Uni and many others to fight cybercrimes such as money laundering, terrorist financing and scams. . “
He reveals that this year, they have “already responded to 5,600 inquiries, that is 100% more than those of 2020”. Recently, Binance supported “the dismantling of a prolific network of cybercriminals responsible for laundering more than $ 500 million in damage caused by dark web operations and large-scale cyber attacks,” CZ claims.
“I think the many decisions we have taken to protect the interests of users are the reason they chose to be part of Binance, which has helped us grow rapidly over the past four years.”
“Four years later, we are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries. More regulations are, in fact, positive signs that an industry is maturing, as it lays the groundwork for a wider population to feel secure in participating in crypto.
CZ added that he believes a “well-developed long-term legal and regulatory framework will be a solid foundation that will truly make crypto essential in everyone’s daily life.”
The Binance CEO added that “clarifying and developing the first set of standards is essential for the continued growth of the industry” and that the company “wants to be a positive contributor.”
He also mentioned:
“As I said at the end of 2020, compliance is a journey – especially in new industries like crypto. The industry still has a lot of uncertainty. We also recognize that with growth comes more complexity and more. of responsibility. “
He acknowledged that as a 4-year-old startup, Binance still has “a lot of room for improvement.” Binance has “grown very quickly and we haven’t always understood everything, but we are learning and improving every day,” he confirmed.
CZ further noted that they now hope to “clarify and reiterate our commitment to work with regulators, and that we are proactively recruiting more talent, putting more systems and processes in place to protect our users.”
He shared what he believes are “tangible steps” that they are currently taking and will continue to take:
“Grow our international compliance team: We have increased our international compliance team and our advisory board by 500% since last year. Notable appointments include former FATF Executive Secretary Rick mcdonell and former head of the Canadian delegation to the FATF Josée Nadeau as compliance and regulatory advisors, as well as Max Baucus, former US Senator from Montana and US Ambassador to China, to provide high level advice – these are the first of many high level additions to our team. We plan to double the size of our team by the end of the year, with qualified and experienced advisers to support us.
He further revealed that Binance was further expanding its ‘robust’ compliance partnerships: “We have implemented new supervisory and regulatory technologies with partners such as CipherTrace to instill additional protections in our users.
He further asserts that they have now “authorized several external anti-money laundering (AML) audits – a strong validation of our current AML controls and partnerships.”
“Localize our operations and activities to comply with local regulations: We are committed to complying with appropriate local rules wherever we operate. In four years, we have gone from a startup to what we are today.
He precised :
“Binance.com is not available to US users, while there is a brand partnership with Binance.US, which is a fully independent entity that is a compliant and regulated exchange in the United States, to provide users Americans a safe, secure and compliant trading platform.
The CEO of Binance concluded:
“Our vision is to increase freedom and inclusion for a better society. We strongly believe that our industry will benefit people all over the world, through the creation of inclusive financial opportunities and the freedom of money. “