On Wednesday, April 18, 2024, Binance converted all assets in its Secure Asset Fund for Users (SAFU) into USD Coin (USDC). According to data from Etherscan, over 800 million USDC was transferred from the SAFU wallet address at 2:35 am UTC with a gas fee of $1.88.
In a blog post published on the same day, Binance emphasised its commitment to evolving and adapting to market dynamics and the continued importance of the SAFU toward those aims. According to the exchange, USDC is “a trusted, audited, and transparent stablecoin,” and the decision to keep the SAFU’s assets in the USDC enhances the reliability of the Fund while maintaining stability at $1 billion.
Today, all SAFU assets will be converted to $USDC, bolstering reliability and stability at $1bn.
Read more 👇 https://t.co/Dggl3CdQYU
— Binance (@binance) April 18, 2024
Notably, this move positions Binance with a substantial 3% share of the circulating supply of USDC, which is approximately $32.6 billion.
Established in 2018, the SAFU was designed to safeguard users’ assets during challenging scenarios, such as exchange breaches, and to reimburse users for unforeseen losses. Previously, Binance held funds in various currencies, including BUSD, TUSD, BNB, Bitcoin, and USDT (Tether).
Meanwhile, this marks the Fund’s second conversion within a year. Binance had previously replaced its BUSD holdings in the SAFU with TrueUSD (TUSD) and USDT in March 2023. The conversion was in response to the regulatory scrutiny Paxos, the issuer of BUSD, faced from the U.S. Securities and Exchange Commission and the New York Department of Financial Service (NYDFS).
READ MORE: What You Need to Know About the Paxos and Binance USD (BUSD) Stablecoin Controversy
Binance continues to maintain its position as the top global exchange and boasts the largest protection fund. Bitget, which is a close contender, recently released a report stating that its Protection Fund is now valued at over $422 million. The Fund is reportedly composed of 6,500 BTC and 137 million USDT tokens.
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