5 ms·

Guess it's Binance' stable coin. It does seems a little strange, do they convert all their assets to their own stable coin? :O https://coinmarketcap.com/curren

Guess it's Binance' stable coin. It does seems a little strange, do they convert all their assets to their own stable coin? :O https://coinmarketcap.com/currencies/binance-usd/ https://coinmarketcap.com/currencies/binance-usd/

joyfylbanana 4y ago
Yes they do, they announced it a while back. It is certainly interesting way to handle customer assets.
- vineyardmike 4y ago
  In some horribly twisted way, it might make sense? If BUSD is a “safe” stable coin backed by real, liquid, currency in a binance bank account (lots of IFs), it might make more sense as accounting than storing it as USDC stored in another company’s bank account, in that other company’s country. If that company makes bad decisions, it could impact binances customers. Especially after FTX and prior stablecoin fiascos, storing customers funds in your own bank seems prudent. If binance can soft-real-time mint USDC during bank hours, then any conversion can be done by a regular-banking wire transfer. All they need is some pre-minted reserves for off-hours. Orrrrrrr they’re playing games with customers funds and hiding it in their own coffers. In which case BUSD is backed by a lie. FTX is familiar.
  - jacquesm 4y ago
    > hiding it in their own coffers Or they have spent it or given it out in bad loans.
    - vineyardmike 4y ago
      Yea that’s what I meant. Doing their own shady thing.
  - joyfylbanana 4y ago
    Depends on how they communicate with the user. If their terms say that they are allowed to convert other USD-pegged tokens to BUSD, fine.
c0m 4y ago
They automatically convert most stablecoins (though very notably not Tether) into BUSD upon depositing. Then if you withdraw some USDP/TUSD/USDC/maybe some others I'm not remembering, they'll subtract it from your BUSD balance. FTX did something similar, though they just auto-converted them to and from fiat USD (again, notably, not applying this policy to Tether).

joyfylbanana 4y ago

Yes they do, they announced it a while back. It is certainly interesting way to handle customer assets.

vineyardmike 4y ago
In some horribly twisted way, it might make sense? If BUSD is a “safe” stable coin backed by real, liquid, currency in a binance bank account (lots of IFs), it might make more sense as accounting than storing it as USDC stored in another company’s bank account, in that other company’s country. If that company makes bad decisions, it could impact binances customers. Especially after FTX and prior stablecoin fiascos, storing customers funds in your own bank seems prudent. If binance can soft-real-time mint USDC during bank hours, then any conversion can be done by a regular-banking wire transfer. All they need is some pre-minted reserves for off-hours. Orrrrrrr they’re playing games with customers funds and hiding it in their own coffers. In which case BUSD is backed by a lie. FTX is familiar.
- jacquesm 4y ago
  > hiding it in their own coffers Or they have spent it or given it out in bad loans.
  - vineyardmike 4y ago
    Yea that’s what I meant. Doing their own shady thing.
- joyfylbanana 4y ago
  Depends on how they communicate with the user. If their terms say that they are allowed to convert other USD-pegged tokens to BUSD, fine.

c0m 4y ago

They automatically convert most stablecoins (though very notably not Tether) into BUSD upon depositing. Then if you withdraw some USDP/TUSD/USDC/maybe some others I'm not remembering, they'll subtract it from your BUSD balance. FTX did something similar, though they just auto-converted them to and from fiat USD (again, notably, not applying this policy to Tether).