- BUSD issued by Paxos in the interest of users, held by Binance’s SAFU fund
- The stablecoin was previously withdrawn from the Industry Recovery Initiative Fund
Binance, the world’s largest cryptocurrency exchange, announced that it converted the BUSD stablecoin into its SAFU Fund. The Safe Asset Fund for Users (SAFU) was launched by the exchange in 2018 as an emergency insurance fund for the safety of users. The fund initially consisted of Bitcoin (BTC), Binance USD (BUSD) and Binance Coin (BNB).
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However, given the latest development with BUSD issuer Paxos, Binance has chosen to hold other stablecoins instead of BUSD. The latest announcement states that the exchange will exchange BSD for TrueUSD (TUSD) and Tether (USDT). forward ad Saying,
“This exchange is to ensure that the assets in SAFU continue to protect users in the long term as BSD’s market capitalization continues to decline over time. Users will not be affected by this change and these funds will remain at publicly verifiable addresses.”
Notably, the update comes days after Changpeng Zhao, aka CZ, announced that the exchange would trade Industry Recovery Initiative Fund business. Stablecoins were exchanged for King Coin: Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB)Even Coinbase, a major US crypto exchange, ended its support for BSD suspend your business Services. In a tweet, he Saying,
“Given the transition to stablecoins and banks, #Binance will convert the remainder of the $1 Billion BUSD Industry Recovery Initiative Fund to native crypto, including #BTC, #BNB, and ETH. Some fund movements will be chained. Transparency.
Since it went under the radar of the United States Securities and Exchange Commission (SEC), the position of BUSD in the market began to turn south. Additionally, Paxos stopped mining the stablecoin on February 21 by order of New York regulators. And, the reason was cited as “a series of unresolved issues related to Paxos’ oversight of its relationship with Binance.” This resulted in the issuer of the stablecoin terminating its relationship with the global crypto exchange.
Additionally, the CEO of Paxos said that the company is prepared to take the matter to court should the commission label the stablecoin as a security. Currently, however, the company is “compromising”constructive discussions“With the sec.
