The control finding
This profile covers Binance-Peg BUSD, a Binance-administered BNB Chain wrapper whose value and exit depend on Binance custody and its published backing address, not the retired Paxos token alone.
- Backing
- Assets held by Binance to support Binance-Peg BUSD on BNB Chain; this is distinct from new Paxos BUSD issuance, which ended.
- Holder’s position
- The holder relies on Binance’s wrapper and backing arrangement rather than holding the original reserve asset directly.
- Redemption or exit
- Exit depends on Binance conversion or secondary-market liquidity; it is not a direct new-issuance claim against Paxos.
Dependencies an advisor should record
- Binance custody and operations
- Published peg-token backing addresses
- BNB Chain token contract
- Market liquidity for the legacy asset
Material incident check
- Paxos stopped minting new BUSD in 2023; this profile is deliberately scoped to the remaining Binance-Peg wrapper rather than implying active Paxos issuance.
Why this distinction matters
Record Binance as the controlling party, verify direct-redemption eligibility, and do not treat an on-chain balance as eliminating reserve, custody, contract, or legal dependencies.
A named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. That finding can coexist with a sound reserve, useful product, or appropriate client role. The grade prevents the on-chain wrapper from being mistaken for the absence of an administrator.
Questions before use
- Does the exact contract and chain match the instrument reviewed here?
- Which party can mint, burn, pause, upgrade, block, or redeem?
- Does the client have direct redemption access or only secondary liquidity?
- What protocol, bridge, wallet, and custodian dependencies are added?
- Which event would force review or exit?
Sources
- Binance: Proof of collateral for B-Tokens · primary
- Paxos: BUSD transparency · primary
- DefiLlama: Stablecoins circulation dataset · secondary
Documents and product terms can change. This profile records the control interpretation reviewed on 2026-08-19; verify current terms before implementation.
Legend: No freeze key: no issuer or administrator can freeze an address at this layer · Governed, no freeze: on-chain collateral and governance set the terms, but no issuer blocklist exists · Mixed control: on-chain mechanisms sit beside custodians, real-world assets, a central transaction orderer, or other parties a court or regulator can compel · Issuer can freeze: a named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. How grading works.