- BUSD is now available for trading on the Kyber Network.
- The Kyber Network includes nearly 100 dapps that will get access to BUSD swaps.
- BUSD has significant momentum in the stablecoin space so far in 2020.
Kyber has added another stablecoin to its platform, bringing new liquidity to the industry leading liquidity protocol.
Binance, the world’s largest digital asset exchange by trading volume, announced today that the BUSD stablecoin will be immediately available for trading on the Kyber Network, including nearly 100 dapps with Kyber integration.
The addition allows users to swap more than 70 ERC20 tokens for BUSD, currently the fifth largest stablecoin by total supply. The move opens the door for significant new uses and users for the Binance-backed stablecoin, potentially pushing it ahead of competitors like DAI and PAX in the battle to capture stablecoin demand.
BUSD launched in September 2019 and has become the most used stablecoin released after 2018. BUSD has a total supply of $180 million, outpacing DAI’s $106 million and Huboi’s HUSD $121 million total. On a broader scale, however, BUSD is smaller than Paxos’ PAX and Coinbase’s USDC stablecoin, with supplies of $247 million and $739 million, respectively. All competing stablecoins are of course dwarfed by Tether, with a total supply of more than $5.7 billion.
BUSD has until now been used in association with the Binance crypto exchange, but the token itself is managed and supported by Paxos. Paxos helped ensure the stablecoin was approved by the New York State Department of Financial Services (NYDFS), and also supports their own PAX stablecoin as well as a gold backed PAXG stablecoin.
Stablecoins have experienced rapid adoption in recent months, seen as an answer to the question of how to unlock the liquidity trapped in volatile cryptocurrency assets. While by far the oldest and largest stablecoin provider, persistent questions remain about Tether’s claims of backing each token 1:1 with USD and the secretive business’s ultimate place in the crypto ecosystem. In light of these concerns, the door appears to be open for smaller competing stablecoins like BUSD to become the industry standard.
The supply of BUSD has grown nearly 500% from just $30 million at the start of 2020, (the most of any stablecoin besides Tether) indicating growing interest even before the Kyber integration. With integration into DeFi’s most popular exchange protocol, BUSD could now be well positioned in the stablecoin space.