Binance, the world’s largest cryptocurrency exchange, announced the conversion of its entire Secure Asset Fund for Users (SAFU) to the USD Coin (USDC) stablecoin. The decision, announced on April 18, marks a significant change in the company’s strategy regarding the management of its assets.
SAFU, created in 2018 by Binance, aims to protect the platform’s users in extreme situations, such as hacks, guaranteeing reimbursement for unforeseen losses. Until now, the fund was mainly made up of Bitcoin (BTC), Tether (USDT), True USD (TUSD) and Binance Coin (BNB).
However, Binance announced the conversion of all SAFU assets to USDC. While the company did not detail the reason behind this move, it stated that it was seeking to “make use of a reliable, audited and transparent stablecoin for SAFU.” Additionally, Binance is aiming to further enhance the reliability and stability of the fund, which currently totals around $1 billion.
Today, all SAFU assets will be converted to $USDCbolstering reliability and stability at $1bn.
Read more 👇 https://t.co/Dggl3CdQYU
— Binance (@binance) April 18, 2024
Meaning behind converting to USDC
Binance’s decision to completely migrate its assets to USDC raises several questions within the crypto community.
While some interpret this as a measure to ensure the fund’s stability amid the volatility of the cryptocurrency market, others suggest that it could be a strategy for taking profits at an opportune time.
USDC, a stablecoin issued by Circle, is known for its transparency and regular audits, which may have been a deciding factor in choosing Binance.
Meanwhile, Tether (USDT), the market’s dominant stablecoin, has faced controversies regarding its fiat reserve. And this has raised concerns about its stability and reliability.
Speculations and reactions in the market
Binance’s move generated a series of speculations and debates among cryptocurrency market observers. While some analysts suggest that the move to USDC is a strategic move to ensure the security and stability of the fund, others raise questions about the reasons behind the specific choice of USDC over USDT.
🚨SAFU FUND🚨IS @BINANCE DUMP BITCOIN OR IT’S OTC DEAL, STILL UNCLEAR…
Binance Converts Its Billion-Dollar ‘SAFU’ Emergency Fund into USDC. Following this announcement, Binance deposited 16,277 BTC (approximately $1 billion) and 1.36M BNB (valued at nearly $749 million) into… pic.twitter.com/TN1s1nnFU0— Nilesh Rohilla | Crypto Analyst (@nilesh_rohilla) April 18, 2024
Source: https://www.criptofacil.com/fundo-de-emergencia-da-binance-alcanca-3-da-oferta-de-usdc/
