- All of the assets in cryptocurrency exchange Binance’s billion-dollar SAFU insurance fund have been converted to the USDC stablecoin in a significant restructure.
Binance has revealed a surprising upgrade for its SAFU emergency insurance fund, turning all of its assets—roughly $1 billion—into USD Coin (USDC), Circle’s stablecoin.
The exchange stated in a blog post on April 18 that it wishes to “meet market conditions head-on” by moving all 100% of SAFU’s assets to USDC, even though the precise motivation behind the decision is yet unknown.
According to the exchange, the action will guarantee SAFU’s stability at the $1 billion mark and improve its dependability. Binance claims that a “trusted, audited, and transparent” stablecoin for SAFU will further improve the fund’s dependability by utilizing USDC.
When the SAFU fund was first established in 2018, its holdings included Bitcoin (BTC), Tether (USDT), TrueUSD (TUSD), and Binance Coin (BNB).
The most recent action follows the appointment of Richard Teng, who replaces Changpeng Zhao as CEO of Binance, in accordance with a deal with the US Department of Justice.
Along with the SAFU restructure, Binance recently named Gabriel Abed, the former ambassador of Barbados to the United Arab Emirates, as chair of its inaugural board of directors.
Along with founding members Heina Chen, Jinkai He, and Lilai Wang, the board’s seven members include important executives like Richard Teng.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
