Cryptocurrency exchange Binance announced it has converted its entire reserve in the Secure Asset Fund for Users (SAFU) to Circle’s USDC stablecoins, aiming to fortify stability.
Following the implementation of this new strategy, the SAFU address presently contains 1,000,000,000 USDC, as opposed to diversifying its holdings across various assets like USDT, TUSD, and BNB earlier. Moreover, another address previously allocated to Bitcoin (BTC) holdings has transferred its entire balance, approximately 16,277,000 BTC, back to the Binance hot wallet.
In an official blog post, Binance noted that this action is intended to leverage the attributes of the transparent, audited, and trusted stablecoin USDC, thereby enhancing reliability and ensuring stability of the reserved funds.
Founded in 2018, the SAFU fund serves as a protective measure for the exchange during exceptional circumstances, distinguishing Binance from other cryptocurrency platforms with its unique approach.
Binance’s Total User Assets Surpass $100 Billion Mark
Recognized as one of the major cryptocurrency exchanges, Binance has a strong focus on altcoin trading, facilitating transactions across over 350 cryptocurrencies and virtual tokens. The platform offers some of the most competitive cryptocurrency transaction fees and high liquidity.
Furthermore, Binance maintains user assets at a 1:1 ratio, supplemented by extra reserves, which can be verified through its proof-of-reserves (POR) system encompassing 31 supported digital assets. As of March, the total assets held on behalf of exchange users have exceeded $100 billion.
Recently, the exchange revealed its intention to re-enter the Indian market, following its blocking, along with several others, by local authorities earlier this year. As part of this initiative, the exchange plans to pay a $2 million penalty to the Indian government and reform its South Asian entity to achieve full registration with India’s Financial Intelligence Unit (FIU), which oversees digital asset trading in the country.
The post Binance Converts All SAFU Emergency Insurance Fund’s Reserve To USDC For Enhanced Reliability appeared first on Metaverse Post.
