Major crypto exchange Binance initially pushed back against a Bloomberg report that its Binance-Peg BUSD stablecoin “doesn’t always appear to have been completely backed by BUSD”.
In a Jan. 10 blog post, Binance said the basis for the report — which was later amended to clarify the difference between a pegged and backed stablecoin — was a “timing mismatch in backing Binance-Peg BUSD with BUSD”. Based on an analysis from ChainArgo co-founder Jonathan Reiter, the news outlet reported that the Binance-peg BUSD was often undercollateralized between 2020 and 2021, a gap that sometimes exceeded $1 billion.