Binance Replaces BUSD with USDT and TUSD in SAFU

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Binance swapped BUSD for USDT and TUSD in its Secure Asset Fund for Users as Pax­os hon­ors $7.9 bil­lion in BUSD redemptions.

The world’s largest exchange said the swap was a proac­tive move to pro­tect user funds as BUSD’s mar­ket fall con­tin­ues to fall.

Binance SAFU Holds at Least $1 Billion After BUSD Replacement

The exchange will con­tin­ue to ensure that the safe­ty fund has enough mon­ey and will increase the SAFU amount peri­od­i­cal­ly using its own mon­ey. BUSD is a Binance-brand­ed sta­ble­coin issued by Pax­os, which also issues its own Pax dollar.

At cur­rent prices, the SAFU’s Bit­coin address holds about 16,000 BTC, worth $438,518,660.

SAFU BTC
SAFU BTC Wal­let | Source: Blockchair

The fund’s BNB and USDT wal­let con­tains rough­ly 1,364,102 BNB or $458,257,191.

BNB Wallet
SAFU BNB Wal­let | Source: Bsc­Scan

Binance will con­tin­ue to hold user funds on pub­licly ver­i­fi­able address­es and sup­port BUSD trading.

Binance funds the SAFU, which start­ed in 2018, using a pro­por­tion of trad­ing fees. 

The BUSD replace­ments come rough­ly a month after New York reg­u­la­tors ordered its issuer Pax­os to stop mint­ing the token.

Fol­low­ing the order, Pax­os redeemed or con­vert­ed $7.9 bil­lion BUSD tokens to fiat in 32 days. The issuer said it would con­tin­ue sup­port­ing the asset until at least Feb­ru­ary 2024.

Coin­base sus­pend­ed BUSD trad­ing short­ly after the New York order, say­ing the token no longer met its list­ing requirements.

Moody’s Warns of Crisis of Confidence in Fiat-Backed Stablecoins

Rat­ing agency Moody’s said the recent depeg­ging of the USDC sta­ble­coin fol­low­ing the col­lapse of Sil­i­con Val­ley Bank might inten­si­fy scruti­ny on sta­ble­coins in the U.S.

Last week, USDC dropped to about $0.92 on the cryp­to exchange Krak­en, fol­low­ing $1 bil­lion in redemp­tions after the U.S. reg­u­la­tors placed SVB under receivership.

Fol­low­ing last week’s depeg­ging event, Moody’s says sta­ble­coins that rely on fiat to keep their peg to the dol­lar may suf­fer from the recent con­fi­dence cri­sis in mid-size banks like SVB and Signature.

USDC issuer Cir­cle hon­ored $5 bil­lion in mint­ing and redemp­tions after the depeg. The Fed­er­al Deposit Insur­ance Corporation’s takeover of Sil­i­con Val­ley Bank soon restored the peg.

How­ev­er, Moody’s said that if the reg­u­la­tor had not stepped in, Cir­cle would have need­ed to liq­ui­date assets to hon­or transactions.

After the USDC depeg, House Finan­cial Ser­vices chair Rep. Max­ine Waters said she and Sen­ate Bank­ing Com­mit­tee Chair Rep. Patrick McHen­ry were com­mit­ted to expe­dit­ing the pas­sage of a sta­ble­coin bill draft­ed last year.

Disclaimer

BeIn­Cryp­to has reached out to com­pa­ny or indi­vid­ual involved in the sto­ry to get an offi­cial state­ment about the recent devel­op­ments, but it has yet to hear back.



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