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Binance Converts Emergency Fund to USDC
Binance, a leading cryptocurrency exchange, has recently announced a strategic move to convert its entire emergency fund into USDC (USD Coin), a stablecoin issued by Circle Internet Financial. This decision marks a significant shift in the composition of the exchange’s Secure Asset Fund for Users (SAFU).
Background of the SAFU Fund
Established in 2018, the SAFU fund was designed as a safety net for customers during extreme situations. Previously, the fund held a mix of assets such as TUSD, BNB, Bitcoin, and USDT. However, in the latest development, Binance has transitioned the entire fund to USDC.
New Strategy Under CEO Richard Teng
The shift to USDC aligns with the new strategic direction set by CEO Richard Teng, who took over from Changpeng “CZ” Zhao. This change follows a plea deal with US agencies in November 2023, resulting in a substantial fine. Teng has implemented stricter requirements for token listings and overseen the spin-off of Binance’s venture capital unit.
Advantages of Using USDC
Binance emphasized the benefits of utilizing USDC, a trusted and transparent stablecoin pegged to the US dollar. The conversion aims to enhance the reliability and stability of the fund, ensuring it maintains a value of approximately $1 billion. Transparency is further enhanced through real-time monitoring via a public blockchain address.
Board of Directors Appointment
In a move to reshape its corporate image, Binance recently appointed a board of directors for the first time. The board, chaired by Gabriel Abed, includes key company executives and outside members from the industry. This step signifies Binance’s shift towards a more conventional corporate structure after years of operating without a headquarters.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
