Binance Replaces BUSD in SAFU Fund

• Binance has announced that it will replace the Binance USD (BUSD) holdings in its Secure Asset Fund for Users (SAFU) with TrueUSD (TUSD) and Tether (USDT).
• The move comes as a result of Paxos’ decision to stop minting new BUSD, which has led to the asset’s market capitalization falling.
• Binance assured users that this change would not impact them and that their funds would continue to be held in publicly verifiable addresses.

What is SAFU?

The Secure Asset Fund for Users (SAFU) is an emergency insurance fund established by Binance in July 2018. It is designed to protect user funds in case of security breaches or other unforeseen events. A percentage of trading fees are used to grow the fund, with its value standing at $1 billion as of Jan. 29, 2022. Initially, the wallets consisted of BNB (BNB), Bitcoin (BTC) and Binance USD — which has now been replaced by TUSD and USDT.

Paxos Stops Issuing New Tokens

On Feb. 13, 2021, issuer Paxos Trust Company announced it would no longer be issuing new tokens effective Feb. 21, following directions from the New York Department of Financial Services. This move was followed by reports that U.S regulators were scrutinizing both Paxos and BUSD — leading some members of the crypto community question whether stablecoins are the real issue here or not. After these reports emerged, Binance minted nearly $50 million worth of TUSD on Feb 16th according to data from Etherscan.

No Impact on User Funds

Binance stated that this change will have no impact on users and that their funds remain safe in publicly verifiable addresses; additionally they will closely monitor the fund and top it up periodically if necessary using their own funds. Furthermore, they reassured users that although they have swapped out their holdings for TUSD & USDT – their support for BUSD would continue unchanged regardless of this decision..

Conclusion: Funds Remain Safe & Secure

To conclude, it is clear from this article that despite replacing the holdings within their fund – user funds remain safe and secure with no negative impact caused as a result – as well as continued support being provided for both TUSD & USDT as well as original asset: BUSD

By admin