Binance Swaps Out BUSD Holdings in SAFU Fund for TUSD and USDT

By Tsunami 03/17/23 2:10 PM

In a recent announcement, Binance has stated that it will be swapping out BUSD holdings in its Secure Asset Fund for Users (SAFU) for TUSD and USDT. This move comes as Paxos, the issuer of BUSD, announced that it will no longer be minting new tokens, leading to a decrease in BUSD market capitalization over time.

The SAFU fund was established in July 2018 by Binance as an emergency insurance fund to protect users’ funds. Binance committed a percentage of trading fees to grow the fund to a sizable level to safeguard users. As of January 29, 2022, the fund was valued at US$1 billion based on the opening price, although its value will fluctuate based on the market.

The swap from BUSD to TUSD and USDT will have no impact on users, and these funds will continue to be held in publicly verifiable addresses. BUSD will still be supported on Binance, and the SAFU fund will be observed closely to ensure that it is sufficiently capitalized and topped up periodically using Binance’s own funds.

In response to the ongoing banking crisis in the United States, which has impacted stablecoins in the cryptocurrency market, Binance CEO CZ has also announced that the remaining funds from the Industry Recovery Initiative (IRI) will be used to purchase BTC, BNB, and ETH. The IRI was established to provide support to projects and businesses affected by the COVID-19 pandemic. CZ emphasized that some of the fund’s activities will take place on the blockchain, and all transactions will be publicly transparent.

Overall, Binance’s decision to swap out BUSD holdings in the SAFU fund for TUSD and USDT shows its commitment to ensuring the safety and protection of users’ funds. As the market continues to evolve, it is essential for cryptocurrency exchanges to remain agile and make necessary adjustments to safeguard their users’ interests.

ist of SAFU Wallet Addresses: