Binance has converted the entire pool of assets held in an emergency fund for users into USDC.
Binance, the world's largest cryptocurrency exchange, has converted its entire emergency fund for users, known as the Secure Asset Fund for Users (SAFU), into USDC, the stablecoin issued by US firm Circle Internet Financial.
Established in 2018 to serve as a backstop for customers in "extreme situations," SAFU previously held funds in wallets comprising TUSD, BNB, Bitcoin, and Tether's USDT, according to a Binance Academy post. The move to USDC, a stablecoin pegged to the US dollar, marks the latest strategic shift under Chief Executive Officer Richard Teng's leadership over the past five months.
Teng took over from Changpeng "CZ" Zhao following a November 2023 plea deal with US agencies that resulted in a $4.3 billion fine. Since then, Teng has overseen the spinning off of Binance's venture capital unit and tightened requirements for new token listings on the platform.
The SAFU fund, which is typically maintained at around $1 billion, can fluctuate based on market movements. Binance stated that using USDC for SAFU enhances its reliability and stability, as USDC's value is designed to remain close to $1.
Chris Holland, a partner at HM, a Singapore-based compliance consultancy firm, noted that the "100% USDC composition gives certainty to the value of the fund in US dollar terms."
