Is It Still Safe to Use?

Yes. The token remains fully backed by cash and U.S. Treasuries held by Paxos. Reserves are regularly audited, and it is supervised by the New York State Department of Financial Services.

Can It Be Redeemed for Dollars?

Yes, but only through Paxos. Users can redeem tokens 1:1 for U.S. dollars, although new issuance has been paused.

What’s the Difference Between the Regulated and the Pegged Version?

The regulated version is issued by Paxos on Ethereum. The pegged version is created by Binance for use on the BNB Chain. The latter is not overseen by Paxos.

Will It Be Phased Out?

New issuance stopped in early 2023 after regulatory pressure, so supply will likely decrease over time. Binance has started supporting other stablecoins, which suggests this one may play a smaller role in the future.

What Are the Alternatives?

Popular choices include USDT (Tether), USDC (USD Coin), and newer options like FDUSD. The best fit depends on your region, platform support, and intended use.

Binance USD Explained – What this Stablecoin is and How it works

Emre Kaya

Nov 24, 2025

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10 min read

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