12-year-old cousin called me dad?

Some background: I'm 22, and I've known my 12-year-old (m) cousin for about 3-years now, since he was roughly 10, and I've been a part of his life since then. He doesn't have a dad or know who his dad is, but his little half-brother, has one. Back on us, I've taken him on outings with me, bought him stuff for sports or school, and given him advice and support. I always tell him if he needs anything, to let me know and that he can message me or call me anytime (especially when he hates that his lil brother's dad visits and spends the night). We'll text each other goodnight, but back in May, he recently started calling me "dad" (i.e. goodnight dad; or when I tell him good luck at something "thanks dad!"; even told me "happy birthday dad!"); I don't mind, but I've asked him also why he does it and he told me because I'm like a dad to him; I asked him again and told him that's a big deal to call me dad and he needs to think if he REALLY wants to and he said yes. Just to see, I asked him "what's one thing you wish i could do for you" and he told me: be my real dad.

Like I said, I don't mind it all but the fact we're distant cousins and the way today's society thinks has me a little paranoid...

PS: I was accused at one point of having a "relationship" with him by one of his friend's dad (confronted me in private) who insisted my cousin call him "uncle so and so"...This concerned me so I talked to my cousins mom and showed her the messages we'd send and she was okay with it all...so for the record, I have NO romantic feels for my cousin, just familial love. lol

So is this normal? Thoughts are welcomed! Thanks!