In an effort to establish trust and dependability, Binance transferred its SAFU money from Bitcoin and its native token BNB to Circle’s USDC.
Binance Holdings Ltd., the top cryptocurrency exchange in terms of daily traded volume and registered users, announced significant adjustments to its Secure Asset Fund for Users (SAFU) in the midst of the continuous heightened volatility of cryptocurrencies ahead of Bitcoin’s halving in 2024. Circular Internet Financial’s USDC stablecoin, which is backed by the US dollar, has reportedly replaced all of Binance’s emergency insurance money.
“We are transferring all of SAFU’s assets to USDC today. Using a stablecoin that is trustworthy, audited, and transparent for SAFU makes it even more reliable and guarantees that it stays stable at $1 billion,” Binance added.
In many batches, Binance changed 16,277 Bitcoins and 1.36 million BNB tokens to USDC, according to on-chain statistics. Consequently, there is a new $1 billion limit on Binance SAFU wallets.
Binance SAFU has distinguished itself from other cryptocurrency exchanges since its inception in 2018, when Changpeng Zhao was the CEO. More than 187 million people throughout the world have signed up to use the Binance exchange, and they all need security measures to prevent hackers and other ultimate problems.
After the UST and FTX exchanges failed a year ago, the bitcoin sector was subject to strict regulation. Binance Exchange has already paid a punishment of $4.3 billion for breaking US anti-fraud and anti-money-laundering rules.
For this reason, Binance has been doing all of its business in accordance with the letter of the law in order to secure its future development. In addition, during the verified crypto bull run, institutional investors are looking for regulated web3 organisations to work with that are safe.
After Binance’s BUSD collapsed, Circle’s USDC became the second-largest stablecoin by market cap. There was an average daily trading volume of around $9.1 billion USDC and a fully diluted value (FDV) of approximately $32.7 billion according to this study.
A number of prominent institutions use USDC, a stablecoin backed entirely by US dollars, including BNY Mellon, MoneyGram, Visa Inc. (NYSE: V), Robinhood Markets Inc. (NASDAQ: HOOD), BlackRock Inc. (NYSE: BLK), and Mastercard Inc. (NYSE: MA), among many others.
It is evident that the cryptocurrency market is quite liquid for all investors, since Binance’s SAFU has moved from Bitcoin and BNB to USDC. The BNB and BTC sales by Binance had a significant impact on short-term purchasers since the fourth Bitcoin halving is less than four days away.
On top of that, the price of BNB has been falling over the previous week, falling roughly 10% to $541 on Thursday. Similarly, as of this writing, the price of Bitcoin is about $60,987, down almost 14% from the previous week. However, no matter what happens, Binance will maintain its dominance in the cryptocurrency industry because of its unparalleled customer safety features.
Also Read: JPMorgan Predicts a Decline in Bitcoin Following the Halving
