Binance recently made headlines by converting funds from its Secure Asset Fund for Users (SAFU) into USDC, Circle's US dollar-pegged stablecoin.
The SAFU fund
Established in 2018, Binance SAFU is the emergency fund to protect users in the event of unexpected events or cyber incidents that could result in cryptocurrency losses.
Fueled by trading commissions generated on the platform and more, the fund exceeds one billion in total value.
Converting to USDC
In the name of improving the stability and liquidity of the fund, approximately $1 billion in BTC and approximately $740 million in BNB were converted into USDC and ended up in new Binance hot wallets.
Furthermore, it seems that this move also comes from a simple profit taking on the assets in question. After all, both assets have had decidedly bullish months.
An expected surprise is the choice of USDC and not USDT which is the most capitalized.
The reasons seem to be linked to the fact that USDC is considered more transparent than USDT. Its reserves are regularly audited by independent accounting firms, such as Grant Thornton LLP, and the results of these audits are publicly available.
Binance's communication confirms the conversion in this article
https://www.binance.com/en/blog/ecosystem/update-safu-conversion-to-usdc-270057093957213098
If you liked the article, subscribe and leave a like to not miss the next updates
Here below some links if you'd like to support me:
Sign up to Nexo and get $5 in Bitcoin,16% APY on your stablecoins and 2% cashback on Nexo Card by depositing and holding at least $100 for 90 days
https://nexo.com/ref/j6atsfddtw?src=android-link
Freecash (earn 20/100$ each month without cash investment)
Cointiply (earn 20/100$ each month without cash investment)
