- Binance has announced a conversion of its SAFU fund.
- SAFU is Binance’s emergency insurance fund to protect users in extreme situations.
- The fund previously held assorted cryptocurrencies.
The world’s largest crypto exchange by trade volume, Binance, has taken steps to bolster the “reliability and stability” of its billion-dollar SAFU fund as the industry braces for the upcoming Bitcoin halving.
Established in 2018, the Secure Asset Fund for Users (SAFU) is Binance’s emergency insurance kitty to protect users in extreme situations, such as unforeseen losses. The fund previously held a mix of crypto assets, including Bitcoin, Tether, True USD, and BNB.
Binance Converts 100% SAFU to USDC
On April 18, Binance announced that it would convert 100% of its SAFU assets to Circle’s stablecoin USDC, noting that it was part of the exchange’s evolution to “meet market conditions head-on.”
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“Today, we are transferring 100% of SAFU’s assets to USDC. Making use of a trusted, audited, and transparent stablecoin for SAFU further enhances its reliability and ensures it remains stable at $1B.” Binance stated.
Per Etherscan, the SAFU wallet address provided by Binance in the announcement made two transfers of 1.36 million BNB and 16,277 BTC as part of the conversion process. At press time, the wallet held $1 billion USDC, representing about 3% of the entire supply of Circle’s stablecoin.
The move marks the second time Binance has swapped crypto assets in the fund in over a year, with the first conversion of Binance USD (BUSD) to Tether and True USD in March last year.
The first conversion was in response to a regulatory crackdown on BUSD issuer Paxos, which was reportedly ordered by the New York Department of Financial Services (NYDFS) to cease the issuance of BUSD.
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