My first though as well. There are however 2 scenarios where it could fit the definition: 1. arbitrage. It regularly happens that stable coins trade bellow 1 U

My first though as well. There are however 2 scenarios where it could fit the definition: 1. arbitrage. It regularly happens that stable coins trade bellow 1 USD. Traders are buying them up to then redeem them at face value. Tether even made the mistake to advertise this "risk free" opportunity when USDT was trading around 0.98-0,99 USD. 2. I believe Paxos is sharing its bond profits together with Binance, in this case it could be seen as a security because Binance is earning money based on paxos effort.