#BUSD #USDT #TUSD #safu #Binance
In response to recent events surrounding the issuance of unregistered securities by stablecoin issuer Paxos, Binance, the world's largest cryptocurrency exchange by trading volume, has announced that it will be replacing Binance USD (BUSD) in its SAFU fund with Tether (USDT) and TrueUSD (TUSD). The move is intended to ensure that the SAFU fund continues to protect users in the long term.
The decision to replace BUSD comes after Paxos, which no longer issues new BUSD tokens, was targeted by the US Securities and Exchange Commission (SEC) and the New York Department of Financial Services (NYDFS) for the issuance of unregistered securities.
Binance has been reducing its holdings of BUSD and exchanging them for TUSD and USDT, which will now be added to the SAFU fund alongside BNB and BTC. However, Binance has clarified that this move will not affect users and that the assets in the SAFU fund are fully verifiable.
The SAFU fund was created in mid-2018 to protect user assets in the event of a hack or other unforeseen event. With the replacement of BUSD, the SAFU fund will continue to provide this protection using a diverse range of stablecoins and cryptocurrencies.
Binance has also announced that it is exploring other alternatives to BUSD but has not yet withdrawn support for the stablecoin. Users will still be able to use BUSD for the platform's activities and services.
In summary, Binance's decision to replace BUSD in its SAFU fund with Tether and TrueUSD is a proactive move to protect users in the long term following recent events surrounding Paxos and the issuance of unregistered securities. Although Binance is reducing its holdings of BUSD, it is still supporting the stablecoin for the time being and exploring other alternatives for the future.