By Alicia Maher
Binance’s USD pegged stablecoin, BUSD, has recently been listed on the largest crypto exchange platform in the United States, Coinbase, and is traded via the Ethereum network as an ERC-20 token.
Coinbase continues to attract stablecoins to its platform, and the latest listing is the eighth for one of the leading crypto exchanges in the world.
Coinbase currently supports a handful of stablecoins like USDT, USDC, UST, DAI, PAX, RAI, and MUSD. The addition of BUSD is the latest in a series of moves by the exchange to expand its service delivery to accommodate users of other stablecoins.
Meanwhile, the BUSD was launched with Paxos, a crypto asset management firm in charge of the stablecoin’s USD reserves. Binance’s BUSD occupies 10th place among the over 172 digital assets listed on the Coinbase exchange.
Technical Glitches a Cause for Concern
Despite the widely accepted move by Coinbase to include the BUSD on its platform, the process was not as smooth as many expected it to be from the beginning. Hours after the listing announcement, most Coinbase users complained about their inability to process their transactions while trying to transfer BUSD tokens to their wallets.
However, the issue arises due to Coinbase’s decision to pause trading for Binance’s BUSD due to the BUSD/USDT pair’s inability to meet specific liquidity measures required for trading. That said, Coinbase duly resumes the trading sessions once the threshold for liquidity is completed.
As direct competitors to Binance, the two top crypto exchanges are constantly at odds to dominate the market. But they have kept their rivalry aside and are set to work together to solve the liquidity problem hampering BUSD transfers on the Coinbase exchange.
Binance is reported to have previously called out Coinbase in a war of words to outdo one another as they aim to gain a broader public audience.
Binance’s Seeming Row with Regulators
There is no crypto exchange out there that has been in the spotlight regarding its somewhat frosty relationship with regulators more than others. From China to the UK and other regions, Binance is known to call the bluff of regulatory bodies, especially about constant compliance with laws.
However, this is not to say Binance has not been compliant with the existing laws of the region in which it is operating, but the fact remains that it has the most face-offs with government agencies than others.
Regarding the BUSD listing on Coinbase, Binance has complied with the recommended regulatory guidelines for stablecoins, and its reserves have been audited to meet the requirements.
Before the BUSD was listed on the Coinbase exchange, it underwent rigorous examination by the renowned auditing firm, Withum. It has been vetted to satisfy claims that its stablecoin is backed by the dollar. Stablecoins are pegged to conventional fiat currencies to keep them stable during market storms.
So far, the only remaining issue for the Binance BUSD is performance, and the exchange is confident that it will meet its set goals.