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Binance Converts Security Funds to USDC: A Wise Move for Greater Stability?

By KMatt | Blogging Crypto | 19 Apr 2024


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

 

 

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KMatt
KMatt

Welcome to my blog <3 I love playing videogames, interested in crypto, support #lgbtqi+ and human rights


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