Binance has assured users that they will not be affected by the change and that their funds will continue to be stored in publicly verifiable addresses.
On March 17, the cryptocurrency exchange Binance announced that Binance had replaced the USD
BUSD
tickers down
$1.00
Secure Asset Fund (SAFU) for users with TrueUSD (TUSD) and Tether
USDT
tickers down
$1.00
. The move comes in response to Paxos’ recent move to stop issuing new BUSD, which caused the asset’s market capitalization to drop.
SAFU is a special insurance fund established by Binance in July 2018 to protect user funds in the event of security breaches or other unforeseen events. Binance has set aside a percentage of trading fees to raise a $1 billion fund by January 29, 2022. SAFU wallets originally consisted of BNB.
BNB
tickers down
337 dollars
, Bitcoin
BTC
tickers down
$27,878
and Binance USD – now replaced by TUSD and USDT.
Binance assured users that they will not be affected by the change, that their funds will continue to be stored in publicly verifiable addresses, and that BUSD will continue to be supported. The stock exchange added that it closely monitors the operation of the fund to ensure that the fund is sufficiently capitalized and that it is replenished from time to time from its own resources if necessary.
On February 13th, BUSD issuer Paxos Trust Company announced that it will stop issuing new BUSDs as of February 21st, in accordance with the guidelines and agreement of the New York Department of Financial Services.
Related: Coinbase shuts down BUSD trading
Days after reports surfaced that US regulators were investigating Paxos and BUSD, Binance issued nearly $50 million worth of TUSD. The transaction took place on February 16, according to Etherscan data, and comes two days after Binance CEO Changpeng Zhao said on Twitter on February 14 that Binance intends to “diversify” its stablecoins away from BUSD.
With the US Securities and Exchange Commission taking action against BUSD, some members of the crypto community have questioned whether stablecoins are really the problem, or whether it is really Binance, since the SEC did not take action against Paxos stablecoin backed by gold. Pax Gold (PAXG).
