Binance’s billion-dollar emergency fund was previously held in three wallets — held in Bitcoin, Tether, True USD, and BNB.
The world’s largest crypto exchange, Binance, is converting its Secure Asset Fund for Users (SAFU) into Circle’s stablecoin USD Coin (USDC), and now represents 3% of the stablecoin’s circulating supply.
The company announced the move on April 18, stating that “we are transferring 100% of SAFU’s assets to USDC” but didn’t elaborate on why, other than it was “making use of a trusted, audited, and transparent stablecoin for SAFU,” which further enhances its reliability and ensures it remains stable at $1 billion.
The exchange’s Secure Asset Fund for Users is an emergency insurance fund established in 2018 to protect Binance users in extreme situations such as exchange hacks, whereby users could be reimbursed for unforeseen losses.