#StablecoinPayments Binance has played a significant role in the evolution of stablecoin payments, particularly through its Binance USD (BUSD) token. BUSD is a U.S. dollar-pegged stablecoin issued by Paxos Trust Company and regulated by the New York State Department of Financial Services (NYDFS). It is designed to maintain a 1:1 value with the U.S. dollar, providing stability in the volatile cryptocurrency market.

To enhance the utility of BUSD across various blockchain networks, Binance introduced Binance-Peg BUSD, a wrapped version of BUSD available on platforms like BNB Smart Chain, Avalanche, and Polygon. This initiative aimed to facilitate seamless transactions and interoperability across different blockchain ecosystems .

However, Binance-Peg BUSD has faced challenges regarding its collateralization. Investigations revealed that at times, the reserves backing Binance-Peg BUSD did not fully match the circulating supply, leading to undercollateralization issues. Binance acknowledged these discrepancies, attributing them to "timing mismatches" in the rebalancing process. The company has since implemented more frequent rebalancing to ensure full backing of the token .