Binance will invest client fiat in US Treasuries
A court ruling allows Binance to invest client cash in US Treasury notes.
The crypto community welcomes the court approval.
In 24 hours, BNB rose 5%.
On Friday, Binance was granted court clearance to invest some clients' fiat assets in US Treasury notes. Amid speculation over Ethena's USDe token, the BNB token rose 5% after the announcement.
Following court approval of Binance's investment plan, BNB soars.
Binance was granted court clearance to invest client fiat monies in US Treasury notes. The District Court of Columbia lawsuit showed that the exchange may only invest BitGo-held client funds.
The exchange must guarantee that corporate assets from third-party investors or enterprises are invested. The corporation must submit investment statistics periodically.
The approved US Treasury Bills "will mature on a rolling four-week basis," without third-party inclusion, according to court filings.
The news excited crypto community members, who feel Binance and the crypto sector would benefit. Others believe the action will boost BNB token prices.
"I expect Binance to swap crypto and Tradfi assets. The following decade would see Nasdaq, BlackRock, and JPMorgan. DWF Labs founder Eugene Ng was bullish.
X users have debated if the permission would affect Ethena's USDe stablecoin. USDe investors may sell Binance's stablecoin due to its fresh US Treasury bill investments.
When you can hold fiat in Binance or sDAI in your wallet without centralized risk, why hold USDe? The deal? BNB long, ENA short "X Crypto Condom wrote.
BNB is up over 5% after the clearance, as positive rumors spread.
