# \[RFC\] Promote BUSD to Collateral Tier

**URL:** <https://forum.euler.finance/t/rfc-promote-busd-to-collateral-tier/526>\
**Category:** Risk\
**Created:** [December 4, 2022, 9:39pm UTC](https://forum.euler.finance/t/rfc-promote-busd-to-collateral-tier/526 "2022-12-04T21:39:05Z")\
**Posts on this page:** 1\
**Page:** 2

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**Author:** ![asot](https://avatars.discourse-cdn.com/v4/letter/a/aeb1de/32.png) [@asot](https://forum.euler.finance/u/asot)\
**Post date:** [January 2, 2023, 5:15pm UTC](https://forum.euler.finance/t/rfc-promote-busd-to-collateral-tier/526/21 "2023-01-02T17:15:36Z")

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I would personally recommend abstaining from promoting BUSD to collateral tier.

While BUSD on Ethereum is backed by PAXOS which is regulated and audited, concerns around the backing of Binance-pegged versions of BUSD on other chains, such as BSC, have arisen and I believe a full resolution of these issues is required before this risk should be taken on.

Further information: [https://twitter.com/datafinnovation/status/1609847100149489666?s=46&t=9sDsL62Bsa3gD7oiv3z4nw](https://twitter.com/datafinnovation/status/1609847100149489666?s=46&t=9sDsL62Bsa3gD7oiv3z4nw)

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