- Binance SAFU shift: BUSD to TUSD, USDT
- Paxos halts BUSD minting, market cap declines
- SAFU fund adapts, maintains user security
Binance, the prominent cryptocurrency exchange, revealed on March 17 that it had made a strategic shift within its Secure Asset Fund for Users (SAFU) by swapping out Binance USD (BUSD) holdings for TrueUSD (TUSD) and Tether (USDT).
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This decision followed Paxos’ recent cessation of BUSD minting, which subsequently caused a decline in the asset’s market capitalization. As a result, Binance has taken proactive measures to maintain the integrity of its emergency insurance fund.
Established in July 2018, SAFU was designed as a safeguard for users’ assets in the event of security breaches or other unforeseen circumstances. By allocating a portion of its trading fees, Binance has grown the fund to a considerable value of $1 billion as of January 29, 2022. Initially composed of Binance Coin $ 559.74 2.76%, Bitcoin $ 64,763.35 5.41%, and Binance USD $ 1.01 0.81%, the fund has now adapted to include TUSD and USDT in lieu of the latter.
In addressing user concerns, Binance has reassured its clientele that the changes within SAFU will not have any negative implications on their holdings. The exchange maintains that funds will continue to be held in publicly verifiable addresses, and BUSD support will persist despite the adjustments. Binance’s commitment to transparency and user trust remains a top priority amid these changes.
To ensure the ongoing stability and sufficiency of SAFU, Binance has pledged to closely monitor the fund and make necessary top-ups using its own resources. This proactive approach demonstrates the exchange’s dedication to the security and protection of its users’ assets.
By adapting to changes in the cryptocurrency landscape and making strategic adjustments, Binance seeks to maintain its position as a leading and trusted platform in the rapidly evolving world of digital assets.
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