Binance Converts $1B Emergency Fund to USDC
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Binance has converted its $1 billion Secured Asset Fund for Users (SAFU) into Circle's stablecoin USD Coin (USDC), which represents about 3% of the stablecoin's total circulation.
SAFU was established in 2018 to compensate Binance users for unexpected losses and protect them in difficult situations such as exchange hacks. The money is already held in three wallets, Bitcoin, Tether, True USD and BNB.
“We will transfer 100% of SAFU assets to USDC,” Binance said, adding that the move aims to use a trusted, audited and transparently stable coin to protect its users and increase reliability.
According to data from Etherscan, the SAFU wallet address transacted 800 million USDC on Ethereum at 02:35 UTC with a transaction fee of $1.88. The conversion process involved the transfer of 1.36 million BNB and 16,277 BTC, worth approximately $754 million.
This is SAFU's second conversion in just over a year. In the year In March 2023, Binance replaced its Binance USD (BUSD) holdings with Tether (USDT) and TrueUSD (TUSD) in response to regulatory action against BUSD issuer Paxos, announcing that it would cease operating the exchange-backed stablecoin.
With a circulating supply of $32.6 billion, USDC is the second largest stablecoin in the market, commanding a 20% market share. The stablecoin supply has increased by 33% since December. Tether, however, remains the dominant stablecoin with a massive $108 billion supply and 69% market share.
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