BUSD (BUSD): What It Is, Uses and Risks

BUSD is a stablecoin that the project describes as pegged to the US dollar, with a stated redemption rate of 1 BUSD for 1 USD. It is associated with Binance, the exchange whose name it carries, and it is classed as a fiat-backed stablecoin, meaning each token is meant to be backed by dollar reserves rather than by another crypto asset. The project description says it has received approval from the New York State Department of Financial Services (NYDFS). Readers should treat that as a statement from the project, and check the current regulatory status with the regulator or the issuer before relying on it. Public reporting from 2023 said that new BUSD minting was halted under regulatory direction, and that the supply has shrunk since then. Because the situation has changed over time, verify the latest issuer announcements rather than relying on older summaries.

The main purpose of a dollar stablecoin like BUSD is to hold a value close to one US dollar on blockchains. People use such tokens to move dollar value between exchanges and wallets, to hold a store of value that is not a volatile asset, and to act as a trading pair against other crypto tokens. BUSD was widely used for these purposes on centralised exchanges and in decentralised finance. The project description says holders can buy and redeem the token directly at 1 BUSD for 1 USD. Whether that redemption is available in practice, and under what conditions, depends on the issuer's current terms, which can change. Anyone considering using the token should read those terms first and should not assume that a listed peg guarantees a fixed value in every market.

The data used for this page lists a price of about 0.998 USD and a market capitalisation of about 34.4 million USD, both as of 2026-11-05 and at the time of writing. The circulating and total supply are both listed at about 34.4 million tokens, with no maximum supply set. The 24-hour trading volume was very low, at about 1,485 USD. The 7-day price change was close to zero, and the 1-year change was about 0.6 percent. The recorded all-time high of about 2.58 USD in November 2024 and all-time low of about 0.11 USD in June 2025 are far from a normal dollar peg. For a stablecoin, that range is unusual and may reflect thin or inaccurate trading records, so readers should check these figures on live data sources before drawing any conclusion. None of these numbers are a forecast or a reason to buy or sell.

The token is listed as issued on the Ethereum blockchain. It does not have a native chain of its own, since it is an asset that runs on Ethereum rather than a base-layer coin. Ethereum-based tokens follow the rules of that network, so transaction fees and wallet support depend on Ethereum conditions at the time. Any version of the token on another network would be a different deployment and may not be redeemable in the same way, so confirm the network before sending funds. Sending tokens to the wrong chain or to an address that does not support the token can result in permanent loss.

Stablecoins carry several risks that are separate from the price of the underlying asset. The peg depends on the issuer holding reserves and honouring redemptions, so any gap in reserves, a change in regulatory position, or a halt in redemptions could cause the token to trade below one dollar. Thin trading volume, as shown in the data, can make it harder to exit a position at a fair price. Smart contract risk applies to any token on Ethereum, and phishing sites often copy stablecoin names. To store BUSD, use a wallet that you control and that supports Ethereum tokens, check the contract address against the issuer's published information, and keep recovery phrases offline. This page is for research and is not financial advice.