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 — later amended to clarify the difference between a pegged and backed stablecoin — was a “timing mismatch in backing Binance-Peg BUSD with BUSD”. The news outlet reported that the Binance-peg BUSD was often undercollateralized between 2020 and 2021 based on an analysis from ChainArgo co-founder Jonathan Reiter, a gap that sometimes exceeded $1 billion.

“Despite variances in the data, at no point were redemptions impacted for users,” said Binance. “There is also no impact to BUSD on ERC-20 issued by Paxos, which is regulated by the NYDFS, audited monthly and backed by USD cash and cash-equivalent reserves.”