Binance, a leading cryptocurrency exchange, has converted its $1 billion Secure Asset Fund for Users (SAFU) entirely into the stablecoin USDC.
SAFU Fund Background
SAFU was established in 2018 to protect Binance users from market volatility. The fund has typically held a balance of $1 billion, but its value has fluctuated due to crypto price movements.
BUSD Concerns
In 2022, the fund held $700 million in Binance USD (BUSD) and $300 million in Bitcoin. However, concerns arose after BUSD’s issuer, Paxos, faced scrutiny from the SEC and NYDFS. Binance subsequently replaced its SAFU BUSD holdings with USDT and TUSD.
USDC Conversion
Now, all of the SAFU holdings have been converted to USDC, the second-largest stablecoin by market cap. Binance states that this move “enhances reliability.”
USDC Background
USDC was co-created by Coinbase and Circle in 2018. Circle recently assumed full governance and operations responsibilities for USDC.
Disclaimer
The information provided in this article is for informational purposes only and should not be construed as investment advice.
