This is sort of re-assuring: if CZ stole all the money (SBF Style) then they would not have handled almost 2Bn (2.7Bn if you include Monday's outflows...) in withdrawals so smoothly...
The fact that Binance can handle this outflow which is small compared to their total holding proves nothing. Know what would prove something? An audit. But obviously that can’t do that, as it would expose them.
But this is crypto so maybe they’ll keep it going for another half a decade before it implodes.
They could have a $70b in total assets but $140b in liabilities. We don't know. They would still be able to handle $2B fairly easily.
But the fact that they paused USDC withdrawal means they're not backed 1:1 like they claimed to be.
That said, withdrawals have resumed and given Binances policy of treating USDC USDT and BUSD interchangeably they physically cannot maintain reserves for the TOTAL liability in EACH coin...
And why do they have to even swap what the customer deposited? Doing something they wouldn't want to tell customers?
The advantage here is that it significantly improves liquidity. Instead of having (at least) three different markets (one each for BUSD USDT and USDC) you just have 1...