Gemini’s GUSD no longer backed by real USD?

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I posted this in /r/Gemini already, but if anyone here is interested:

Gemini updated their Gemini dollar page three days ago:

Before (June 30th):

Each GUSD corresponds to a U.S. dollar held by Gemini in accounts at U.S. FDIC-insured bank accounts and money market funds holding short-term U.S. treasury bonds and maintained at a custodian.

Now:

Each GUSD corresponds to a U.S. dollar that may be held by Gemini in accounts at U.S. Federal Deposit Insurance Corporation (“FDIC”)-insured banks, money market funds holding short-term U.S. treasury bonds and maintained at a custodian, or other account types.

So it seems that Gemini can now do pretty much whatever they want with the USD that was supposed to be backing their “stablecoin”

submitted by /u/ersan191
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