Binance has transferred $1 billion from its Secure Asset Fund for Users (SAFU) to USD Coin (USDC), the stablecoin created by Circle. This means that the fund now accounts for about 3% of the stablecoin's total supply that is in circulation.
The SAFU was created in 2018 to reimburse users of Binance for unanticipated losses in the event of severe circumstances, such as exchange hacking. Prior to this, the money was kept in three wallets with values in True USD, Tether, Bitcoin, and BNB.
The move is intended to "make use of a trusted, audited, and transparent stablecoin," Binance said, adding that the intention is to safeguard its users and improve dependability. Based on Etherscan data, the SAFU wallet address transacted 800 million USDC on Ethereum at 02:35 UTC for a transaction fee of just $1.88. The conversion process also involved the transfer of 1.36 million BNB, or approximately $754 million, and 16,277 BTC.
In a little more than a year, the SAFU has undergone two conversions. When BUSD issuer Paxos stated that it would cease minting the exchange-backed stablecoin in reaction to a regulatory crackdown, Binance replaced the Binance USD (BUSD) holdings in the fund with Tether (USDT) and TrueUSD (TUSD) in March 2023.
USDC is the second-largest stablecoin available, with a circulating supply of $32.6 billion and a market share of about 20%. The quantity of the stablecoin has grown by 33% since December. But with a record-high circulating supply of $108 billion and a 69% market share, Tether continues to be the leading stablecoin.
April 2024, Cryptoniteuae