Binance is moving to a “semi-automated” process for managing the reserves of tokens it issues after years in which reserves were mixed with customer funds and at least one major stablecoin, Binance-peg BUSD, was not always fully backed, according to a Bloomberg report.
The crypto exchange acknowledged the problems last month with the tokens, also known as B-tokens, and said they had been fixed.
Binance now has created a partially automated process that ensures B-tokens are “always transparently backed” by a system that only allows new coins to be minted after collateral has been added to the corresponding wallet, a spokesperson told Bloomberg.
“Over the last few weeks, we have been moving the collateralized assets to dedicated wallets, one for each network, to make the 1:1 backing clearly visible,” the spokesperson noted. “This collateral has always been backing our users’ B-token assets and has always been available for withdrawal at any time. We are now simply showing it on-chain in dedicated wallets where it will remain until it may be required.”
The spokesperson said BINANCE had decided to make its new process partially, rather than fully, automated, in order to limit security risks.
Binance did not immediately respond to a CoinDesk request for comment.
