The next contender for best stablecoin, with a market cap of more than $14 billion, BUSD is the third-largest stablecoin in the world. In August 2020, BUSD was “greenlisted” by the New York State Department of Financial Services. For investors in the coin, this means four things. First, Paxos Trust Co. – Binance’s partner behind BUSD – has sufficient reserves to cover every BUSD coin in existence. Second, regulators watch over the reserves backing these coins. Third, all reserves must be held in credible forms such as U.S. Treasury instruments and Federal Deposit Insurance Corp.-insured bank accounts. And finally, token reserves are fully separate from corporate assets. This means they’re separate from any holdings Paxos might declare in bankruptcy filings, which makes the coins even more secure for investors. It’s no surprise, then, that InvestorsObserver ranks BUSD as low risk.
