Binance Replaces BUSD with TUSD and USDT in its SAFU Fund
In a recent development, Binance has decided to replace BUSD with TUSD and USDT in its Secure Asset Fund for Users (SAFU). This decision came after Paxos, the issuer of BUSD announced that it would no longer be creating new BUSD assets.
As Paxos will no longer be minting new BUSD, #Binance has swapped the BUSD in the SAFU Fund for TUSD & USDT.
This change will have no impact on users, and the funds remain on publicly verifiable addresses.
Funds are SAFU.https://t.co/edLVgpdCUQ
— Binance (@binance) March 17, 2023
Binance Ensures Long-Term Asset Protection with SAFU Fund Conversion
The SAFU fund was created to protect Binance users’ assets in case of unforeseen circumstances such as a security breach or a hack. By converting BUSD assets to TUSD and USDT, Binance aims to ensure that the SAFU fund continues to safeguard users over the long term, even if the market capitalization of BUSD continues to fall over time.
It’s important to note that users won’t be affected by this change. The money will still be accessible through public addresses, and trading in BUSD will continue to be backed by Binance. But Binance will keep a close eye on the SAFU fund to make sure it has enough money. If necessary, Binance’s cash will be added to the fund.
Binance Diversifies SAFU Fund Assets to Mitigate Risks
This move is a strategic decision by Binance to ensure the safety and security of its users’ assets. By diversifying the assets held in the SAFU fund, Binance is mitigating the risks associated with having all of its assets tied up in a single currency.
Trending Now: RocketX Boosts Cross-Chain Swaps with Rango Infrastructure
Furthermore, TUSD and USDT are stablecoins that have been in the market for several years and have gained significant acceptance. This makes them a reliable choice for Binance to hold in the SAFU fund.
Binance’s decision to replace BUSD with TUSD/USDT in its SAF fund is a proactive measure to safeguard users’ assets. With this move, Binance is demonstrating its commitment to maintaining a secure and trustworthy platform for its users.
