Binance replaces BUSD in SAFU Fund with TUSD & USDT

Please fol­low and like us:
Pin Share

Cryp­tocur­ren­cy exchange Binance announced on March 17 that it has replaced BUSD hold­ings in the Secure Asset Fund for Users (SAFU) with TrueUSD (TUSD) and Teth­er (USDT). The move comes in response to Pax­os’ recent deci­sion to stop mint­ing new Binance USD (BUSD), lead­ing to a decrease in BUS­D’s mar­ket cap­i­tal­iza­tion over time. 

The Secure Asset Fund for Users (SAFU) is an emer­gency insur­ance fund that was estab­lished by Binance in July 2018 to pro­tect users’ funds in case of secu­ri­ty breach­es or oth­er unfore­seen events. Binance com­mit­ted a per­cent­age of trad­ing fees to grow the fund, which was val­ued at US$1 bil­lion as of Jan­u­ary 29, 2022. The fund’s wal­lets ini­tial­ly con­sist­ed of Binance Coin (BNB), Binance USD (BUSD), and Bit­coin (BTC). How­ev­er, Binance has decid­ed to replace the BUSD hold­ings with TUSD and USDT.

Binance has assured its users that this change will not impact them in any way, and that their funds will con­tin­ue to be held in pub­licly ver­i­fi­able address­es. BUSD will also con­tin­ue to be sup­port­ed on Binance. The exchange also stat­ed that it will close­ly mon­i­tor the fund to ensure that it remains suf­fi­cient­ly cap­i­tal­ized, and will top it up peri­od­i­cal­ly as nec­es­sary using its own funds.

On Feb 13, BUSD sta­ble­coin issuer Pax­os Trust Com­pa­ny announced that it would halt the issuance of new Binance USD (BUSD) sta­ble­coins due to the ongo­ing probe by New York reg­u­la­tors. Pax­os stopped mint­ing new BUSD tokens start­ing from Feb. 21, in accor­dance with the direc­tions and coor­di­na­tion with the New York Depart­ment of Finan­cial Ser­vices (NYDFS). 

Relat­ed: Coin­base dis­ables trad­ing for BUSD

Days after reports of Unit­ed States reg­u­la­to­ry scruti­ny of Pax­os and Binance USD, Binance mint­ed near­ly $50 mil­lion worth of TrueUSD (TUSD). The trans­ac­tion took place on Feb. 16, accord­ing to data from Ether­scan, and came two days after Binance CEO Chan­peng “CZ” Zhao men­tioned in a Feb. 14 Twit­ter Spaces that Binance would look to “diver­si­fy” its sta­ble­coin hold­ings away from BUSD.

In light of the U.S. Secu­ri­ties and Exchange Com­mis­sion’s action against Binance’s BUSD, some cryp­to com­mu­ni­ty mem­bers have ques­tioned whether the real issue at hand is about sta­ble­coins or Binance, as the SEC didn’t take action against Pax­os’ gold-backed sta­ble­coin called Pax Gold (PAXG.)



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *