Binance Replaces BUSD with TUSD and USDT in Its $1 Billion SAFU Fund
In a recent announcement, Binance, one of the world's leading cryptocurrency exchanges, has revealed that it is replacing BUSD stablecoin in its Secure Asset Fund for Users (SAFU) with TrueUSD (TUSD) and Tether (USDT). The SAFU fund was introduced in January 2022 as a $1 billion emergency insurance fund designed to protect Binance users in the event of a disaster. The fund's initial holdings included BNB, BUSD, and BTC.
However, recent instructions from New York state officials to Paxos to cease minting fresh BUSD have led to Binance's decision to replace the unstable stablecoin with more reliable options. The move is aimed at ensuring that SAFU assets continue to protect customers, even as the BUSD market value gradually decreases. Binance has made it clear that it will continue to support the BUSD trading pair.
The news has come as a blow to BUSD investors, as the stablecoin's market valuation has steadily declined from its peak of $15.5 billion in January 2023 to just $8.2 billion. Nevertheless, Binance has assured its users that all funds will continue to be stored at publicly verifiable locations, and no action is required on their part.
In addition, Binance has also announced that it has added Dogecoin (DOGE) and 10 other cryptocurrencies to its improved proof-of-reserves system. This will allow customers to independently verify their DOGE and other cryptocurrency holdings. The exchange occasionally adds to the SAFU fund from its own resources to ensure that it is sufficiently financed.
Overall, Binance's decision to replace BUSD in its SAFU fund with more reliable stablecoins is a move that is aimed at protecting its users' interests. The exchange's commitment to ensuring that all funds are stored at publicly verifiable locations and its continuous efforts to strengthen its proof-of-reserves system are positive signs for the cryptocurrency industry.
Stay tuned to CoinTopper for more news!