# BSC-USD > BSC-USD is a BEP-20 token representing Tether (USDT) on the BNB Smart Chain. It is created via a bridging process, allowing users to access USDT's stability wit... - Canonical URL: https://iq.wiki/wiki/bsc-usd - Categories: Cryptoassets - Tags: BNB Chain - Created: 2025-05-29T20:11:39.975Z - Last updated: 2025-07-14T18:12:33.355Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **Binance Bridged USDT (BSC-USD)** is a [BEP-20](https://iq.wiki/wiki/bep-20) token on the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) representing [Tether (USDT)](https://iq.wiki/wiki/tether) bridged by other [blockchain](https://iq.wiki/wiki/blockchain) networks. Its primary function is to provide users within the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) ecosystem access to a [stablecoin](https://iq.wiki/wiki/stablecoin) [pegged](https://iq.wiki/wiki/currency-peg) to the value of the US dollar. [\[2\]](#cite-id-I88KbYoWt6) ## Overview BSC-USD is a wrapped version of [Tether's USDT](https://iq.wiki/wiki/tether) [stablecoin](https://iq.wiki/wiki/stablecoin), specifically designed for use on the [BNB Smart Chain (BSC)](https://iq.wiki/wiki/binance-smart-chain). It functions as a [BEP-20](https://iq.wiki/wiki/bep-20) token, adhering to the technical standard for tokens on the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain), which ensures compatibility with the network's wallets, [decentralized applications (dApps)](https://iq.wiki/wiki/decentralized-application), and protocols. BSC-USD allows users to [leverage](https://iq.wiki/wiki/leverage) the stability of [USDT](https://iq.wiki/wiki/tether) while benefiting from the lower transaction costs and faster processing speeds characteristic of the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) compared to networks like [Ethereum](https://iq.wiki/wiki/ethereum). The token's value is intended to maintain a 1:1 [peg](https://iq.wiki/wiki/currency-peg) with the US dollar, mirroring the underlying [USDT](https://iq.wiki/wiki/tether) asset. This [peg](https://iq.wiki/wiki/currency-peg) is maintained through a bridging mechanism where original [USDT](https://iq.wiki/wiki/tether) tokens on other chains are locked, and an equivalent amount of BSC-USD is [minted](https://iq.wiki/wiki/minting) on the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain). Conversely, when BSC-USD is bridged back to its original chain, it is [burned](https://iq.wiki/wiki/token-burn), and the locked [USDT](https://iq.wiki/wiki/tether) is released. BSC-USD supply is dynamic, expanding and contracting based on the volume of [USDT](https://iq.wiki/wiki/tether) being bridged onto or off the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain). [\[1\]](#cite-id-vhmDTmLX7p) [\[2\]](#cite-id-I88KbYoWt6) ## Technology BSC-USD is implemented as a [BEP-20](https://iq.wiki/wiki/bep-20) token on the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain). The [BEP-20](https://iq.wiki/wiki/bep-20) standard is a token standard on BSC that extends the [ERC-20](https://iq.wiki/wiki/erc-20) standard, adding features for [burning](https://iq.wiki/wiki/token-burn), [minting](https://iq.wiki/wiki/minting), and pausing transactions. This standard ensures interoperability within the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) ecosystem, allowing BSC-USD to be easily transferred between wallets and integrated into various [dApps](https://iq.wiki/wiki/decentralized-application), including [decentralized exchanges (DEXs)](https://iq.wiki/wiki/decentralized-exchange) and lending platforms. The core technology enabling BSC-USD is the cross-chain bridging mechanism. This process involves [smart contracts](https://iq.wiki/wiki/smart-contract) on the source chain (e.g., [Ethereum](https://iq.wiki/wiki/ethereum)) and the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain). When a user initiates a bridge transfer, the original [USDT](https://iq.wiki/wiki/tether) tokens are deposited and locked by a [smart contract](https://iq.wiki/wiki/smart-contract) on the source chain. Subsequently, a corresponding amount of BSC-USD tokens is minted on the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) and sent to the user's BSC wallet. The reverse process, bridging BSC-USD back to the source chain, involves [burning](https://iq.wiki/wiki/token-burn) the BSC-USD tokens on BSC and unlocking the original [USDT](https://iq.wiki/wiki/tether) tokens on the source chain. Bridge providers facilitate this process. [\[1\]](#cite-id-vhmDTmLX7p) ### Use Cases BSC-USD is primarily used within the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) as a stable, dollar-[pegged](https://iq.wiki/wiki/currency-peg) asset. It functions as a base or quote currency for trading on [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) and is commonly used in [decentralized finance](https://iq.wiki/wiki/defi) applications. These include lending, liquidity provision, and yield farming, where users can allocate BSC-USD to generate returns. Additionally, its compatibility with the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) allows it to be used for low-cost, fast payments and cross-border transfers. [\[1\]](#cite-id-vhmDTmLX7p) ## Tokenomics BSC-USD does not have a fixed supply or a traditional token distribution model like an [initial coin offering (ICO)](https://iq.wiki/wiki/initial-coin-offering). Its supply is dynamic and directly tied to the amount of [USDT](https://iq.wiki/wiki/tether) that has been bridged onto the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain). [\[2\]](#cite-id-I88KbYoWt6)