Monday, April 15, 2024

Binance Swapped BUSD In $1 Billion SAFU Fund For TUSD And USDT Stablecoins


Abstract:

  • Binance moved BUSD property from its Safe Asset Fund for Customers fund into two different stablecoins – TUSD and Tether USDT.
  • The crypto alternate made the swap with crypto belief firm Paxos can not mint new BUSD tokens because of regulatory enforcement motion from federal and state regulators.
  • SAFU’s insurance coverage fund launched in 2018 was valued at $1 billion in January 2022 and now options BNB, BTC, TUSD, and USDT holdings

Binance swapped BUSD holdings in its Safe Asset Fund for Customers (SAFU) fund to 2 different stablecoins, the crypto alternate introduced on Friday. The BUSD held in SAFU was transferred into TUSD, an Ethereum-based stablecoin issued by the TrustToken platform, and Tether’s USDT.

Crypto’s largest centralized alternate made the swap to “be sure that property in SAFU proceed to guard customers” in the long term since Paxos can not mint new BUSD cash and the token’s market cap will dwindle to zero over time.

Certainly, crypto belief firm and BUSD issuer Paxos confronted enforcement motion from two regulators over its stablecoin. The U.S. Securities and Trade Fee (SEC) served Paxos a Wells discover, alleging securities violations. New York’s Division of Monetary Providers (NYDFS) ordered that Paxos cease minting new BUSD cash.

Because the Paxos saga got here to mild, protocols and business gamers have moved to wind down their publicity to the Binance-branded stablecoin. Coinbase suspended BUSD buying and selling on Mar. 13. The Aave neighborhood voted to offboard BUSD from the DeFi lender’s V2 market on Ethereum.

Paxos engaged the SEC in “constructive talks” after denying the securities violation claims. The crypto belief co additionally promised to litigate if needed.

Binance SAFU Insurance coverage

Binance launched SAFU in 2018 as an insurance coverage fund to safeguard consumer property, per particulars from the corporate’s web site. The fund was initially financed by a mixture of Binance’s personal funds and a proportion of buying and selling charges.

In January 2022, SAFU was valued at $1 billion. The fund options a number of crypto tokens together with the corporate’s BNB Coin, main crypto Bitcoin (BTC), TrustToken’s TUSD, and crypto’s largest stablecoin by market cap USDT.



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