Thank you for your smell comment. I am a nerd with bad hygiene, but people do not bring it up that often.
Binance pegged USD is not printed out of thin air. It is a bridged token from Ethereum to other blockchains. Because how smart contracts work, Binance cannot manipulate Binance pegged USD supply unless they seriously break BNB Chain.
If you do not believe this web page, you can also run your own node and ask it directly using JSON-RPC API.
Thus any Binance pegged USD (and other bridged tokens) are 1:1 backed by matching token on Ethereum chain. Binance pegged USD is not different from any other bridged token on other bridges and chains and there is no reason to suspect any foul play here.
Because it is transparent and on-chain there cannot be fraud. There could be, however, technical issues and hacks with the bridges.
The reason why Paxos do not directly issue tokens on other chains is that they 1) likely do not have infrastructure for it yet 2) they are limited by commercial agreements or agreements with a regulator.
"The reason why Paxos do not directly issue tokens on other chains is that they 1) likely do not have infrastructure for it yet 2) they are limited by commercial agreements or agreements with a regulator."
Yet ? We are talking multiple tens of Billions of $ and supposedly they don't have infrastructure YET ?
I don't know anything about the coin itself, but all of this sure smells like the small print that some will find very relevant when the time comes.
Ethereum is the standard for ERC-20 Tokens. It's not hard to get a TRC-20 (Tron) token up and running, but a more careful company might not consider it.
> Yet ? We are talking multiple tens of Billions of $ and supposedly they don't have infrastructure YET ?
These up billions of $$ of customers money which they make a kind of commission on. The commission is not going to be billions but rather millions; and crypto/blockchain infrastructure/developers are very expensive.
Binance pegged USD is not printed out of thin air. It is a bridged token from Ethereum to other blockchains. Because how smart contracts work, Binance cannot manipulate Binance pegged USD supply unless they seriously break BNB Chain.
You can verify the reserves and bridges here:
https://www.binance.com/en/assets-proof
If you do not believe this web page, you can also run your own node and ask it directly using JSON-RPC API.
Thus any Binance pegged USD (and other bridged tokens) are 1:1 backed by matching token on Ethereum chain. Binance pegged USD is not different from any other bridged token on other bridges and chains and there is no reason to suspect any foul play here.
Because it is transparent and on-chain there cannot be fraud. There could be, however, technical issues and hacks with the bridges.
The reason why Paxos do not directly issue tokens on other chains is that they 1) likely do not have infrastructure for it yet 2) they are limited by commercial agreements or agreements with a regulator.