BUSD is a fully collateralized stablecoin issued by Binance and backed by USD reserves held with a licensed custodian (Paxos).
BUSD is a large-cap, fully collateralized asset. This asset depends on a centralized entity for custody services. This asset is exposed to the underlying risks of cBridge, a protocol rated as Watch out.
BUSD is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value.
BUSD has an uncapped supply but has inflation control or burn mechanisms in place. BUSD on BNB Chain is backed 1:1 by BUSD locked on Ethereum by Binance. Each regular BUSD (ERC-20) is backed 1:1 by USD reserves held with a licensed custodian (Paxos). BUSD is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.