Cryptocurrency exchange Binance and trust company Paxos have published a report on the reserves of the stablecoin BUSD, the capitalization of which is $17.9 billion.
According to
document, as of June 30, $738 million of Binance USD reserves were held in fiat currency. This is 4.21% of the total reserves. Another $10.6 billion was placed by the company’s management in short-term US Treasury bonds with a maturity of less than 90 days. Another $6.2 billion of BUSD reserves are placed in next-day repurchase agreements (repos) issued by the US Treasury.
Thus, bonds make up about 60.5% of the stablecoin reserves, and the share of repo bills reaches 35%. The funds are held in “fully segregated bankrupt-proof accounts.” To store reserves, companies use the services of such financial institutions as Silvergate Bank, State Street Bank, Signature Bank.
The document emphasizes that user funds are kept separate from corporate funds and, in the event of any problems, the NYDFS regulator will be able to return their funds to users.
Note that Tether, the operator of the largest stablecoin USDT, was the first to loudly announce the publication of reports on stablecoin reserves. According to the company’s management, such reports will increase the transparency of the stablecoin industry and increase consumer confidence.
Source: Bits
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