The global number one cryptocurrency exchange, Binance, has declared that it will change its User Asset Security Fund (SAFU) into Circle’s US Dollar Coin (USDC) stablecoin.
In an announcement, Binance praised Circle’s USDT as an “audited” and “trusted” stablecoin.
Back in July, Binance established an emergency fund to protect its users. A share of the platform’s trading fees is set aside for this purpose.
Before undergoing the transformation, the fund’s holdings consisted of Binance’s BNB token, Bitcoin (BTC), Tether’s USDT and TrueUSD (TUSD). The fund’s size was usually $1 billion, though its worth would often vary due to the diverse nature of its cryptocurrency assets.
During the volatile cryptocurrency market in November 2022 due to the FTX crisis, Binance acted quickly to bolster user protection by adding funds.
Paraphrasing: Converting to USDC will keep SAFU fund secure during market instability as USDC is linked to the US dollar’s value. Additionally, USDC is frequently praised for its rigorous regulatory adherence, making it a safer choice over Tether’s USDT according to Chris Holland, HM partner, who spoke with Bloomberg, bringing assurance to the fund’s worth.
Based on information from CoinGecko, US Dollar Coin (USDC) ranks sixth among cryptocurrencies with a market value of around $32.4 billion. Binance’s BNB token, however, boasts a market capitalization of over $83.9 billion, placing it in the fourth position.
In March 2023, Binance replaced the BUSD tokens it held as a result of Paxos halting the minting process for regulatory reasons.
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2024-04-18 09:21