Binance’s SAFU Holds Strong with 16,000 BTC Amid Stablecoin Turmoil
Binance has performed a proactive move to safeguard user funds by swapping BUSD for USDT and TUSD in its Secure Asset Fund for Users as BUSD's market value continues to decline.
The SAFU currently holds at least $1 billion and will continue to maintain sufficient funds by periodically increasing its amount with its own resources.
Paxos issued BUSD, a Binance-branded stablecoin, and recently redeemed $7.9 billion BUSD tokens to fiat after New York regulators ordered it to cease minting the token.
Moody warns that the recent depegging of USDC following the collapse of Silicon Valley Bank may increase scrutiny of stablecoins in the US, causing a crisis of confidence in fiat-backed stablecoins.
Circle, the USDC issuer, honored $5 billion in minting and redemptions after the depeg, and the Federal Deposit Insurance Corporation’s intervention restored the peg. The stablecoin bill drafted last year may be expedited for passage following the USDC depeg.
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At current prices, the SAFU’s Bitcoin address contains approximately 16,277 BTC, equivalent to $449 million.
Binance funds the SAFU through a portion of trading fees and will continue to hold user funds on publicly verifiable addresses and support BUSD trading.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
