Coinbase and Circle receive NYDFS approval to offer BUSD transactions 24/7

02/14/2023 23:29 • Blockchain Buzz • 178 views

21:00-7:00 Keyword: Coinbase, BUSD, Circle, NYDFS

Overview of important developments overnight on February 14

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Recently, Coinbase and Circle announced that they have received approval from the New York Department of Financial Services (NYDFS) to offer transactions in BUSD, their stablecoin, 24 hours a day, 7 days a week. BUSD was created by the two companies in 2018 as a stablecoin pegged to the U.S. dollar.

The approval from the NYDFS is a significant milestone for both companies, as it allows them to offer BUSD transactions around the clock, making it more convenient for their customers. Previously, they were only able to offer transactions during normal business hours due to regulatory restrictions.

The significance of this is that it demonstrates the growing acceptance and adoption of stablecoins in the financial sector. Stablecoins offer the advantages of cryptocurrency, such as ease of transfer and lower transaction fees, while eliminating the volatility associated with other cryptocurrencies. BUSD, in particular, is seen as a viable alternative to traditional payment methods due to its stability and the fact that it is backed by the U.S. dollar.

Coinbase is one of the leading cryptocurrency exchanges, and its approval to offer 24/7 transactions in BUSD will likely increase its adoption, which is currently limited to the cryptocurrency community. This is also a strategic move by Coinbase to position itself as a key player in the stablecoin market.

Circle, on the other hand, is a peer-to-peer payments technology company that specializes in blockchain-based payments, so the approval to offer 24/7 transactions in BUSD is in line with its core business. Circle aims to make payments faster, cheaper, and more accessible to people across the globe, and offering BUSD transactions 24/7 is a step in that direction.

In conclusion, the NYDFS approval of BUSD transactions 24/7 by Coinbase and Circle is a significant development in the adoption and acceptance of stablecoins in the financial sector. It also reflects the growing importance of stablecoins in the crypto ecosystem and the need for regulatory clarity. This move will likely boost the adoption of BUSD and cement Coinbase and Circle’s positions in the growing stablecoin market.

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