Binance has revealed that it intends to transform its User Asset Protection Fund (SAFU) into Circle’s US Dollar Coin (USDC) in the future.
After converting $1 billion into USDC, this amount represents around 3% of Circle’s current circulating supply, which totals $32.6 billion.
SAFU Assets Shift to USDC for Stability
In a statement released on April 18, Binance highlighted the significance of the SAFU (Secure Asset Fund for Users) initiative within their platform.
Binance announced that that that that Secure Asset Fund for Users (SAFU) remains a top priority in ensuring the safety of the ecosystem, and they are continually adapting to face market challenges. A recent development is the transfer of all SAFU assets into US Dollar Coin (USDC).
Today, all SAFU assets will be converted to $USDC, bolstering reliability and stability at $1bn.
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— Binance (@binance) April 18, 2024
To enhance its dependability and preserve a $1 billion value during SAFU (Secure Asset Fund for Users) on Binance, the platform intends to employ a proven, examined, and clear stablecoin.
Created in 2018, SAFU (Secure Assets Fund for Users) acts as an insurance fund for Binance users. It’s designed to offer protection during extreme situations such as exchange hacks or breaches, thereby minimizing potential losses for the users.
For some time now, Binance has carefully kept an eye on the amount in their protective fund, making sure it’s adequate for safeguarding their users. The goal is typically set at $1 billion, but this figure can change occasionally.
#Binance has successfully converted all their #Bitcoin (BTC) and #Binance Coin (BNB) Safe Asset Fund for Users (SAFU) holdings into US Dollar Coin ($USDC). You can find the transaction IDs for these swaps listed below.
799,999,990 USDC into SAFU:
BTC from SAFU back into .com deposit address:
BNB from SAFU back into .com deposit address:…
— Binance (@binance) April 18, 2024
Based on information from Etherscan, the SAFU wallet made an Ethereum network transaction worth $800 million USD in USDC around 02:35 UTC, with a fee of $1.88. Simultaneously, over $754 million in BNB, equivalent to 1.36 million tokens, and 16,277 Bitcoin were moved during the same process.
USDC Now Accounts for 3% of Circle’s Supply
Approximately 3% of the total circulating supply of Circle’s USDC stablecoin is currently held in Binance’s insurance fund, which is equivalent to around $32.6 billion when converted to USDC.
Within the past year, this is the second time the fund has undergone a conversion process. Back in March 2023, Binance disclosed their earlier conversion, exchanging Binance USD (BUSD) for Tether (USDT) and TrueUSD (TUSD).
Due to regulatory actions taken after Paxos, the issuer of BUSD, announced they would no longer be producing the exchange-backed stablecoin, this decision was made for user safety reasons.
Based on information from CoinGecko, Tether holds the top spot among stablecoins worldwide, boasting a circulating supply of $109 billion and a market dominance of 69%.
Currently, USDC from Circle holds the number two spot among stablecoins with around 20% of the total market share. The supply of USDC has grown by an impressive 33% since last December, strengthening its presence within the stablecoin sector.
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2024-04-19 10:19