Recently, there have been reports focusing on Binance-Peg BUSD, questioning that the amount of BUSD (issued by Paxos) that the coin is anchored to is not always in a 1:1 ratio. In short, Binance will periodically rebalance or update the assets of the anchor address, but this rebalancing and updating is not real-time. Now, we have increased the frequency of rebalancing and updating to ensure that the anchor ratio is 1:1 at all times.

While Paxos issued BUSD on Ethereum, Binance also issued a wrapped version of BUSD, the pegged token, Binance-Peg BUSD, which runs on BNB Chain, Avalanche, Polygon, and TRON. BUSD is fully pegged to USD cash and cash equivalents, which can be viewed here; Binance-Peg BUSD is fully pegged to BUSD, which can be viewed here.

"Wrapping" tokens is a blockchain term that refers to creating a version of the original asset that can be transferred to other blockchains, with the goal of improving interoperability and connectivity in the digital asset space. Generally speaking, the value of the "wrapped" token is guaranteed by locking up a margin of the original asset, which is also the principle of Binance-Peg BUSD. For more details, please read this article "Interpreting BUSD and Binance-Peg BUSD (Binance-Peg BUSD)".

Due to operational reasons, there has been a time lag between the anchoring of BUSD and Binance-Peg BUSD in the past, which is also a problem found in some recent reports. It can be clearly seen from the data that rebalancing cannot always keep up with the demand of Binance-Peg BUSD. We discovered this problem last year, and now we have increased the frequency of rebalancing and updates to ensure the accuracy and transparency of the anchoring ratio. The reserve proof system we are continuously developing will also incorporate this data.

Importantly, although there are some discrepancies in the data, user exchanges are not affected at all. In addition, BUSD on ERC-20 is also not affected. BUSD is a stablecoin issued by Paxos, regulated by the New York Department of Financial Services (NYDFS), audited monthly, and anchored to USD cash and cash equivalents.