We're excited to announce that Binance-Peg BUSD is now available on Optimism, a popular layer-2 network built on top of the Ethereum blockchain. While BUSD is natively issued by Paxos on Ethereum, Binance-Peg BUSD is a wrapped token pegged to BUSD on a one-to-one basis. With the latest addition, you can now use Binance-Peg BUSD on the BNB Chain, as well as Avalanche, Polygon, TRON, and Optimism networks.
The expanding support of Binance-Peg BUSD on multiple chains provides traders with a fast and safe way to swap BUSD and Binance-Peg BUSD tokens between Ethereum and other blockchains. All users can now explore the Optimism ecosystem with native Binance-Peg BUSD more safely and efficiently.
The Binance-Peg BUSD smart contract address on the Optimism network is:
https://optimistic.etherscan.io/token/0x9c9e5fd8bbc25984b178fdce6117defa39d2db39
Note that BUSD, issued on the Ethereum blockchain by Paxos, is regulated by the New York State Department of Financial Services (NYDFS). Binance provides the pegged token service by locking BUSD on Ethereum and issuing an equivalent amount of Binance-Peg BUSD on other networks (BNB Chain, Avalanche, Polygon, TRON, Optimism, etc.). Binance-Peg BUSD is a Binance product. It is neither issued by Paxos nor regulated by the NYDFS. Please refer to the proof-of-collateral page for more information.
About Optimism
Optimism is a layer-2 network focused on improving the scalability and speed of Ethereum. It is designed to address some of Ethereum’s limitations, such as its relatively high transaction fees and slow processing times. The layer-2 solution allows the Ethereum network to process more transactions per second using "optimistic rollups," whereby, instead of each transaction being processed by the entire Ethereum network, they are processed by smaller groups of nodes, which can significantly increase the network's speed.
Optimism's focus on scalability, security, and reliability makes it an appealing option for developers who want to build decentralized applications (DApps) on Ethereum and their users.
About BUSD and Binance-Peg BUSD
BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar. The Paxos-issued BUSD stablecoin and its reserves are subject to strict regulatory oversight by the New York Department of Financial Services. BUSD is backed by reserves held in either or both (i) fiat cash in dedicated omnibus accounts at insured U.S. banks and/or (ii) U.S. Treasury bills (including through repurchase agreements and/or money-market funds invested in U.S. Treasury bills).
Binance-Peg BUSD, which is neither issued by Paxos nor regulated by NYDFS, is a separate product. Binance independently mints Binance-Peg BUSD on other blockchains (e.g., BNB Chain, Polygon, Avalanche) and pegs the tokens to BUSD on a one-to-one basis. This allows holders of both tokens on the Binance platform to swap tokens between Ethereum and other blockchains.
Read more: Understanding BUSD and Binance-Peg BUSD