> USDC on the exchange are not backed by real USDC. Therefor they need to market buy them. Likely, USDC balances are backed by dollars in the bank account ment

> USDC on the exchange are not backed by real USDC. Therefor they need to market buy them. Likely, USDC balances are backed by dollars in the bank account mentioned in the tweet. To convert that to USDC, they don't need to market buy it - they can wire it to Circle to get fresh USDC minted. In contrast with having all USDC always on hand (like they probably should), this lets Binance earn interest from the bank for their customer deposits. Or they could be insolvent, sure. There's really no way to reliably tell.