The cryptocurrency exchange Binance has converted assets from its Secure Asset Fund for Users (SAFU), valued at $1 billion, into the stablecoin USDC.
Today, all SAFU assets will be converted to $USDC, bolstering reliability and stability at $1bn.
Read more ? https://t.co/Dggl3CdQYU
— Binance (@binance) April 18, 2024
The platform established this emergency insurance structure in 2018 to protect users in extraordinary situations. According to the statement, despite fluctuations, the fund’s balance has been maintained at a relatively constant level.
“Today we are converting 100% of SAFU assets to USDC. Using a proven, audited, and transparent stablecoin for the fund further enhances its reliability and ensures stability at the $1 billion level,” the statement reads.
According to Arkham, Binance transferred 16,277 BTC ($1.01 billion) from the SAFU address to a hot wallet.
In 2023, the exchange supported the stablecoin First Digital USD (FDUSD), launched by the Hong Kong-based custodial and trust company First Digital. Binance listed the coin with a zero-fee trading program.
In early August, then-CEO of Binance, Changpeng Zhao, criticized Tether’s USDT, calling the largest stablecoin by market capitalization a “black box” with a “certain” level of risk. It was subsequently revealed that the exchange had converted part of its USDC reserves into another asset.
The platform later informed users of its intention to cease support for its own “stablecoin” BUSD in 2024. Binance suggested clients convert their funds to FDUSD.
Back in November 2023, Zhao stepped down as CEO of the exchange, succeeded by Richard Teng.