BUSD (Binance USD)
About
BUSD (Binance USD) was a US dollar-backed stablecoin issued by Paxos Trust Company, originally available on Ethereum and BNB Smart Chain, designed for 1:1 redeemability with the US dollar. Each BUSD token was fully collateralized by cash and cash-equivalent reserves held in segregated bankruptcy-remote accounts, with monthly attestation reports published by independent accounting firms. As of February 2023, Paxos halted all new minting of BUSD at the direction of the NYDFS; existing holders can redeem BUSD for USD or convert their tokens to Paxos's regulated stablecoin USDP.
Where Does Yield Come From?
BUSD is a stablecoin backed by US dollars—meaning each token is supposed to be worth exactly $1. By design, holding BUSD does not earn you any extra money. You get no yield, interest, rewards, or other returns just for keeping it in your wallet.
The reason is simple: BUSD does not lend out your coins, put them in a pool, or "stake" them to generate returns. The money that backs BUSD (reserves like US dollar deposits and short-term government debt) does earn some interest, but that interest goes to the company that issued the token (Paxos Trust Company), not to people holding BUSD.
There is no fee to swap 1 BUSD back for 1 US dollar. There is also no system that creates new tokens as rewards or distributes extra value to holders. The product is purely a tool for trading and storing value at a fixed 1:1 peg to the dollar. Per its official documentation, no yield is paid out to token holders.
Persons
Charles Cascarilla
CEO & Co-Founder
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
ChainSecurity01-08-201812-09-2018 |
| The audit found only low-to-medium severity issues, all of which were addressed or acknowledged by the PAXOS team, indicating sound security practices with no critical or high-risk vulnerabilities in the BUSD contract code as audited. |
| The audit found no security vulnerabilities, and all recommendations were implemented by the Paxos team, indicating the contract code was safe at the time of review. | |
Trail of Bits01-10-2018 - 15-10-2018 |
| No critical or high-severity vulnerabilities were identified; the two low-severity findings (orphaned balances on supply controller change and insufficient logging) and four informational issues were all accepted by Paxos, indicating a well-reviewed codebase with residual risks limited to intentional law-enforcement role design. |
Backers
BUSD (Binance USD) was a branded stablecoin issued by Paxos Trust Company, not a separate entity that raised its own venture funding rounds. Information about investors relates to Paxos, the regulated issuer. According to Paxos's official February 2023 newsroom announcement, Paxos is described as "a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures." The Paxos company page also notes the firm was established in 2012 and has raised over $500M in total funding. No specific investment rounds, dates, or amounts attributable solely to the BUSD token were found on the official Paxos site.
Legal
Legal form
National banking association (trust company)
Registration jurisdiction
United States — Paxos Trust Company, N.A. is a national banking association organized under the laws of the United States, regulated by the Office of the Comptroller of the Currency (OCC). Originally chartered as a limited purpose trust company by the New York State Department of Financial Services (NYDFS) in 2015; converted to national-level trust oversight by the OCC in 2025. Also holds state money transmission licenses in Georgia (NMLS #1766787), Iowa (#2025-0122), Tennessee (#1766787), and Texas (#3198).
Status and notes
BUSD (Binance USD) is a US dollar-denominated stablecoin that was issued by Paxos Trust Company, N.A., a regulated national banking association. Paxos halted minting new BUSD tokens in February 2023 following a directive from the NYDFS, but continued to allow customers to redeem BUSD for USD on a one-for-one basis. BUSD is no longer available for purchase or withdrawal as of February 21, 2023. The issuance and redemption are governed by Paxos's publicly available US Dollar-Backed Stablecoin Terms and Conditions (last modified December 12, 2025) and General Terms and Conditions (last modified December 12, 2025), both accessible at paxos.com/terms-and-conditions. Privacy Policy and License disclosures are also published on the official Paxos website. BUSD was issued pursuant to specific approval from the OCC. The stablecoin was fully backed by US dollar deposits or US government debt instruments held in segregated custodial accounts. The operating entity (Paxos Trust Company, N.A.) is headquartered at 450 Lexington Ave., Suite #3952, New York, NY 10163. Corporate activities are overseen by an independent Board of Directors. As of the site footer, the entity holds copyright as "© 2026 Paxos Trust Company, N.A."