As of May 31, 2023, BUSD by Paxos is fully backed by short-dated US Treasuries (45%), Overnight Reverse Repos backed by US Treasuries (55%) and cash (<1%) in fully segregated and bankruptcy-remote accounts.

For off-chain collateral, we rank storage methods as follows (highest to lowest)

• With regulated custodians not in off-shore jurisdictions

• With regulated custodians in off-shore jurisdictions (e.g, BVI, Bahamas)

• Others / Undisclosed

BUSD reserves are fully held in regulated and insured banks and financial institutions in the USA. Further, each custodian has been pre-vetted by the NYDFS.

All customer assets in BUSD’s reserves are fully segregated from Paxos’ corporate treasury and held in bankruptcy-remote accounts.