Thankfully Binance holds their customers' funds 1:1. Except USDC, which they've replaced with a different stablecoin BUSD, which is just like USDC except instead of trusting Circle, it trusts, er... Binance.
Rate limited, so to reply to the gent from Paxos: I did check that out, but:
> Binance-Peg BUSD, which is not issued by Paxos and is not regulated by NYDFS, is a separate product. Binance independently mints Binance-Peg BUSD on other blockchains (e.g., BNB Chain, Polygon and Avalanche) and pegs the tokens to BUSD on a one-to-one basis. This allows holders of both tokens to swap tokens between Ethereum and other blockchains.
From https://paxos.com/busd/
Obviously even if one believes in BUSD, the matter of someone who trusted Circle having their coins transparently replaced with a different coin using a different trust model is concerning.
Rate limited, so to reply to the gent from Paxos: I did check that out, but:
> Binance-Peg BUSD, which is not issued by Paxos and is not regulated by NYDFS, is a separate product. Binance independently mints Binance-Peg BUSD on other blockchains (e.g., BNB Chain, Polygon and Avalanche) and pegs the tokens to BUSD on a one-to-one basis. This allows holders of both tokens to swap tokens between Ethereum and other blockchains.
From https://paxos.com/busd/
Obviously even if one believes in BUSD, the matter of someone who trusted Circle having their coins transparently replaced with a different coin using a different trust model is concerning.