Binance, the biggest cryptocurrency exchange globally, is transforming a portion of its Secure Asset Fund for Users (SAFU) into Circle’s US Dollar Coin (USDC). This change means that USDC now makes up approximately 3% of its total circulating supply, held by Binance.
On April 18, the company revealed that they would be transferring all of SAFU’s assets to USDC without providing additional explanation, except that they were utilizing a dependable, audited, and transparent stablecoin for SAFU. This action strengthens SAFU’s trustworthiness by maintaining its value at $1 billion.
Binance set up a Safety Net Fund called Secure Asset Fund for Users in 2018. This fund acts as an insurance policy for Binance users, providing compensation for unexpected losses, such as those caused by exchange hacks.
Based on information from Etherscan, the SAFU wallet transferred 800 million US Dollars in USDC tokens over Ethereum at 02:35 UTC, paying a minimal fee of only $1.88.
During the conversion procedure, there were additional transactions involving 1.36 million BNB, equivalent to approximately $754 million, and 16,277 BTC.
Approximately 3% of Circle’s total $32.6 billion stablecoin supply is currently held in Binance‘s insurance fund, valued at over a billion dollars.
Approximately one year after the first replacement, Binance made another change to the reserve assets of its Secure Asset Fund for Users (SAFU) in March 2023. Instead of holding Binance USD (BUSD), the fund now holds Tether (USDT) and TrueUSD (TUSD).
In reaction to Paxos, the issuer of BUSD, halting the production of its exchange-backed stablecoin due to regulatory pressure, the subsequent action taken was in response to this development.
Tether continues to be the leading stablecoin, with its circulating supply currently at an all-time high of $108 billion. This represents a market share of approximately 69% based on data from CoinGecko.
USDC, which is a stablecoin issued by Circle, holds the second largest market share at approximately 20%. Since last December, there has been a 33% growth in the supply of this currency.
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2024-04-18 09:08