Source. Crypto info.com
What is Binance USD?
Binance USD (BUSD) is a 'stable coin' which is basically a cryptocurrency that has its value pegged to the US dollar. What this means is that 1 BUSD is always available to buy and sell for 1 US dollar.
Binance USD has received approval from the New York State Department of Financial Services (NYDFS)- quite impressive considering the American authorities skeptical stance on cryptocurrencies.
Holding BUSD is useful when trading cryptocurrencies. For example, if you want to sell a cryptocurrency you hold (maybe you think the price is about to go down) you can sell it for a stablecoin such as BUSD instead of back into your fiat currency (for example, the US dollar). That way you money never has to leave the exchange and it's easier to buy back into cryptocurrencies when you're ready.