Stablecoin

BUSD

Secure

USDC

<div class="dailyhodl">
 <p>Binance has converted all of the crypto in its $1 billion emergency insurance fund into the stablecoin USDC.</p>
 <p>The top global crypto exchange established the “Secure Asset Fund for Users” (SAFU) in 2018 to protect Binance users from “extreme situations.”</p>
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 <p>The fund has typically attempted to maintain a balance worth $1 billion, though fluctuating crypto prices have impacted the value of its holdings over the years. In late 2022, the fund held $700 million worth of Binance USD (BUSD) and BNB, as well as $300 million worth of Bitcoin (BTC).</p>
 <p>Early last year, however, BUSD’s issuer, Paxos, received a “Wells Notice” from the U.S. Securities and Exchange Commission (SEC). In the notice, the regulator stated that it was “considering recommending an action alleging that BUSD is a security and that Paxos should have registered the offering of BUSD under the federal securities laws.”</p>
 <p>The New York Department of Financial Services (NYDFS) also ordered the crypto company to freeze production of BUSD, which aims to maintain a peg to the US dollar, and Paxos subsequently announced that it would end its relationship with Binance for the branded stablecoin.</p>
 <p>As a result, Binance swapped out the SAFU BUSD holdings for the stablecoins USDT and TrueUSD (TUSD) in March 2023.</p>
 <p>Now all of those holdings have been converted to USDC, the second-largest stablecoin by market cap. Binance says the switch “enhances reliability.”</p>
 <p>Top US crypto exchange Coinbase and Circle co-created USDC in 2018 and jointly managed the asset through the Centre Consortium until last year.</p>
 <p>In August, Coinbase Chief Executive Brian Armstrong and Circle CEO Jeremy Allaire said that Circle would bring all of USDC’s governance and operations responsibilities in-house.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/top-crypto-exchange-binance-converts-1-000-000-000-secure-asset-fund-from-bitcoin-and-bnb-to-stablecoin-usdc-tbt85838.html">https://thebittimes.com/top-crypto-exchange-binance-converts-1-000-000-000-secure-asset-fund-from-bitcoin-and-bnb-to-stablecoin-usdc-tbt85838.html</a></p>

Top Crypto Exchange Binance Converts $1,000,000,000 Secure Asset Fund From Bitcoin and BNB to Stablecoin USDC

TheBitTimes

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