Last updated on November 13th, 2022
While you are interacting with the crypto world, you may have noticed that there are 2 versions of BUSD: Binance-Peg BUSD and BUSD.
What exactly is the difference between them, and how can you convert among these 2?
Here’s what you need to know:
Contents
Is Binance-Peg BUSD the same as BUSD?
BUSD is a native ERC20 token that exists on the Ethereum Mainnet, as well as the Binance Chain (BEP2). Meanwhile, Binance-Peg BUSD is the BUSD token that exists on the Binance Smart Chain (BEP20). This means that the value of both Binance-Peg BUSD and BUSD will be the same, just that these tokens exist on different blockchain networks.
If you search for BUSD on Trust Wallet, you will notice that there are 3 separate tokens:
Both the ERC20 and BEP2 versions of BUSD are the native versions of BUSD.
Meanwhile, the BEP20 version of BUSD is the Binance-Peg version, which exists on the Binance Smart Chain (BEP20).
Why was Binance-Peg BUSD created?
When BUSD was originally launched in 2019, the Binance Smart Chain did not exist (which was only launched in September 2020).
This resulted in BUSD being both a native ERC20 and BEP2 token.
As such, there needed to be a way for BUSD to be utilised on the BNB Smart Chain, which resulted in the creation of the Binance-Peg token.
This is a representation of BUSD on the BNB Smart Chain. As a result, you are able to use BUSD on Binance Smart Chain applications like Pancakeswap.
You won’t be able to add the original BUSD into these pools, since BUSD is only available on the ERC20 or BEP2 networks. However, with Binance-Peg BUSD, you are able to use BUSD on the BNB Smart Chain!
For the BEP2 version of BUSD, it will exist on the BNB Beacon Chain. However, you won’t be able to add it to your Metamask wallet as it is not EVM-compatible.
Binance-Peg BUSD should be 1:1 with BUSD
For every Binance-Peg BUSD that is on the Binance Smart Chain, Binance will store 1 BUSD in a public address.
You can access Binance’s ‘Proof of Assets‘ page to show the amount of BUSD that is being kept in the reserves for the different versions of BUSD (BEP20 and BEP2).
Transaction fees are lower on Binance Smart Chain compared to the ERC20 network
If you are sending and receiving BUSD on the ERC20 network, the transaction fees can be quite high. However, if you choose to send BUSD via the Binance Smart Chain (BEP20) or Binance Chain (BEP2), the fees are actually much lower.
Here are the transaction fees you’ll need to pay on Binance when withdrawing BUSD using these different networks:
The transaction fees on BEP2 and BEP20 are much lower compared to the ERC20 network.
While it is advantageous to send Binance-Peg BUSD compared to BUSD, you may want to double check that the wallet or application that you’re using supports the BEP20 version of BUSD.
If they do not support the BEP20 version of BUSD, then you should only be sending BUSD to that wallet or platform. Otherwise, your funds may be lost!
One example would be sending BUSD to Blockfi, where they only accept the ERC20 and not the BEP20 version of BUSD.
How do I convert BUSD from the ERC20 version to the Binance-Peg version (BEP20)?
To convert BUSD from ERC20 to the BEP20 version on the Binance Smart Chain, you will need to send BUSD to a platform that supports both ERC20 and BEP20 versions of BUSD.
Here are some platforms that you can use:
- Binance
- Crypto.com
- Gate.io
- SafePal
How to convert BUSD from ERC20 to BEP20 on Binance
If you would like to convert BUSD from ERC20 to BEP20, you will need to send the ERC20 version of BUSD from your wallet to Binance using the ERC20 network.
First, I will need to obtain the BUSD (ERC20) deposit address on Binance.
This address should start with ‘0x‘. You may also want to note that your ERC20 and BEP20 network addresses will actually be the same.
After that, I will copy this ERC20 address to my Metamask wallet which holds BUSD on the Ethereum mainnet.
After processing the transaction, I will receive BUSD in my Binance account.
Binance does not separate out the different versions of BUSD based on the network you’ve used to send to Binance. As such, it does not matter whether you send BUSD (ERC20) or Binance-Peg BUSD to your Binance account.
Ultimately, all of them will be aggregated into one account balance.
If you would like to send Binance-Peg BUSD (BEP20) to another wallet, you can withdraw BUSD from your Binance account using the BEP20 network.
How to convert BUSD from ERC20 to BEP20 on Crypto.com
Similar to the method for Binance, you will be able to convert BUSD on the ERC20 network to BEP20 by sending BUSD to Crypto.com.
Once you have sent BUSD to the Crypto.com App via the ERC20 network,
Crypto.com will aggregate both the ERC20 and BEP20 balances together.
If you want to send Binance-Peg BUSD to another wallet, you can withdraw from Crypto.com using the BEP20 network.
How to convert BUSD (ERC20) to Binance-Peg BUSD (BEP20) on Gate.io
The process for converting BUSD (ERC20) to Binance-Peg BUSD (BEP20) on Gate.io is similar to how you would do so on Binance or Crypto.com.
First, you will need to obtain the ERC20 deposit address of BUSD from Gate.io.
After that, you can send BUSD (ERC20) to your Gate.io account, and it will be aggregated into your BUSD balance.
Similar to Binance, it does not matter which network you use to send BUSD to Gate.io. All of your BUSD balances will still be aggregated together.
If you want to send Binance-Peg BUSD (BEP20) to another platform, you can do so by choosing the BEP20 network when you are withdrawing BUSD from Gate.io.
How to convert BUSD (ERC20) to Binance-Peg BUSD (BEP20) on SafePal
Another option to convert BUSD (ERC20) to Binance-Peg BUSD (BEP20) is on your SafePal wallet. You can send BUSD (ERC20) to your SafePal wallet via the ERC20 deposit address.
Once you have deposited BUSD (ERC20) to your SafePal wallet, you can go to the ‘Swap‘ feature and swap from BUSD (ERC20) to Binance-Peg BUSD (BEP20).
You will have to pay a transaction fee for each swap that you make.
Can I convert BUSD from ERC20 to BEP20 on Trust Wallet?
You are unable to convert BUSD (ERC20) to Binance-Peg BUSD (BEP20) directly on Trust Wallet. You will need to send BUSD (ERC20) on Trust Wallet to either Binance, Gate.io or a SafePal wallet to perform the swap to Binance-Peg BUSD (BEP20).
If you’ve sent some BUSD (ERC20) to your Trust Wallet, there is no way for you to change it back to BUSD (BEP20).
On the BUSD (ERC20) page, there is no ‘Swap‘ option available to trade it to another asset.
As such, you will not be able to convert BUSD (ERC20) to BUSD (BEP20). You will need to send your BUSD (ERC20) to one of the platforms mentioned above to ‘convert’ it to BEP20.
Can I convert BUSD from ERC20 to BEP20 on Metamask?
You are unable to convert BUSD (ERC20) to Binance-Peg BUSD (BEP20) on your Metamask wallet, as Metamask does not support inter-blockchain swaps. You will need to send BUSD from Metamask to either Binance, Gate.io or a SafePal wallet to perform the swap to BUSD (BEP20).
If you used the Swap feature on Metamask, you are only able to swap BUSD (ERC20) to another coin that is on the Ethereum Mainnet.
As such, it is not possible to switch BUSD (ERC20) to BUSD (BEP20) on your Metamask wallet.
How do I convert BUSD from the Binance-Peg version (BEP20) to the ERC20 version?
To convert BUSD from BEP20 to the ERC20 version on the Ethereum Mainnet, you will need to send BUSD to a platform that supports both ERC20 and BEP20 versions of BUSD.
The process of converting Binance-Peg BUSD (BEP20) to ERC20 BUSD is exactly the same as what is mentioned above. This time, you will need to send Binance-Peg BUSD (BEP20) to the platform of your choice, and then withdraw using the ERC20 network instead.
Conclusion
Binance-Peg BUSD is a BEP20 version of BUSD, which represents BUSD on the Binance Smart Chain. This is similar to other Binance-Peg tokens, including:
This is because BUSD is a native ERC20 and BEP2 token, and not native to the Binance Smart Chain.
There are only a few ways that you can convert between Binance-Peg BUSD (BEP20) and BUSD (ERC20), which include:
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