Binance Says New York Banks Can Now Use Its Stablecoin After Watchdog Approval

Paddy Baker
·1-min read

Binance’s USD stablecoin has been given the green light by New York’s financial watchdog, meaning banks and financial institutions can use the asset without any further regulatory approval.

  • The New York Department of Financial Services (NYDFS) updated its "Greenlist" this week to include Binance USD (BUSD).

  • This means banks in the New York area can now custody and list BUSD without prior approval from the NYDFS but must still inform the regulator before adding it.

  • Binance Compliance Officer Samuel Lim told CoinDesk BUSD could be accepted “on an immediate basis” by licensed entities.

  • “So if tomorrow, JPMorgan decides to use BUSD, they can and can do so immediately,” he said.

  • Binance said BUSD was NYDFS-approved at its launch in September 2019, but exchanges needed approval before listing it.

  • BUSD is a white-label stablecoin from the Paxos Trust Company, which the NYDFS approved to issue stablecoins in 2018.

  • Bitcoin, ether and litecoin are all on the NYDFS’ Greenlist, as are stablecoins such as Gemini dollar and Paxos.

  • Notably absent is Binance coin (BNB), the exchange’s native token. The spokesperson declined to comment on whether Binance was trying to get BNB greenlisted.

  • Binance U.S., the exchange’s local trading platform, is still not available in New York.

See also: Binance Australia Is Actually Run by an Entity Linked to TravelbyBit

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