Recently, Binance subsidiary BAM was granted a court charter to invest customer funds in U.S. Treasury bonds. This move has caused widespread discussion in the cryptocurrency industry. We explore in detail the potential impact of this decision on the cryptocurrency market from both positive and negative perspectives.
positive influence
1. Enhance customer confidence
U.S. Treasuries are widely considered one of the safest investment vehicles in the world. Investing customer funds in this low-risk asset can greatly enhance customer confidence in BAM and its parent company Binance. The cryptocurrency market is often unsettling for investors due to its high volatility and historical security issues (such as exchange hacks). By investing a portion of customer funds in U.S. Treasuries, BAM sends a strong message to customers that they value the security of customer funds and take measures to protect them.