Amid the turmoil with algorithmic stablecoins, more companies are revealing a scheme to secure their stable assets. And if everything was clear about USDT and they had to disclose the scheme for storing assets under pressure from regulators, then to secure BUSD up to There have been no official announcements recently.
In the document provided a few days ago
, it is stated that the money is stored in separate from corporate accounts protected from bankruptcy, and in case of problems, the regulator will be able to return all funds to users.
Today the asset collateral scheme is as follows:
$ 738 million or 4.21% – in fiat currency;
$ 10.6 billion is held in short-term US Treasuries with maturities of less than 90 days. This is already, one might say, the gold standard for stablecoins;
$ 6.2 billion – stored in agreements issued by the US Treasury to the contrary Silvergate Bank, State Street Bank, Signature Bank.
This is quite a qualitative asset structure. Let’s compare with the collateral of Tether on 12/31/2021. Proof
44% placed in short-term US government bills (Treasury Bills);
9% placed on bank deposits and money market funds;
31% in corporate bonds for up to one year.
16% – loans to unknown and undisclosed companies.
Write in the comments, which stable do you trust more, or maybe you don’t believe in their stability at all and keep money in bank accounts?
Such reports will increase the transparency of the stablecoin industry and increase consumer confidence. But it is worth remembering that quality collateral is not a reason to trust all funds to one company, always diversify your assets.