Summary
Binance converted its entire Secure Asset Fund (SAFU) to USDC for stability and reliability. The fund is used as an emergency insurance reserve for investors on the exchange. This move is seen as a strategy to improve the fund’s stability, and Binance chose USDC over USDT due to its transparency and auditability. Critics speculate the move may be more about taking profits than addressing fund health.
Key Points
1. Binance has converted its entire Secure Asset Fund (SAFU) to USDC, the second largest stablecoin after Tether, to improve reliability and stability.
2. The SAFU is an emergency insurance reserve created by Binance to protect users in extreme situations, such as in the case of a hack or loss of assets. The fund typically aims to maintain a balance of over $1 billion.
3. Approximately $1 billion of BTC and $740 million of BNB were moved from the SAFU wallets to Binance hot wallet addresses, with only $1 billion remaining in the SAFU Ethereum address. Binance chose to convert the fund to USDC over USDT for its transparency and trustworthiness.