Crypto alternate Binance has made a notable reorganizational transfer for its billion-dollar SAFU insurance coverage fund, with all of the belongings in it changing into the USDC stablecoin.
Binance has introduced a sudden replace for its emergency insurance coverage fund referred to as SAFU, changing the entire belongings in it — round $1 billion — into Circle’s stablecoin USD Coin (USDC). Whereas the precise purpose for the transfer stays unclear, the alternate mentioned in a blog announcement on Apr. 18 that it needs to “meet market circumstances head-on” by transferring 100% of SAFU’s belongings to USDC.
The alternate says the transfer will improve the reliability of SAFU whereas guaranteeing its stability on the $1 billion mark. By leveraging USDC, Binance says {that a} “trusted, audited, and clear” stablecoin for SAFU will additional improve the fund’s reliability.
Established in 2018, the SAFU fund was beforehand comprised of such belongings as Bitcoin (BTC), Tether (USDT), TrueUSD (TUSD), and Binance Coin (BNB). The most recent transfer comes following the appointment of Richard Teng as CEO of Binance, succeeding Changpeng Zhao, as a part of an settlement with the U.S. Division of Justice.
Along with the SAFU reorganization, Binance lately appointed its first board of administrators, chaired by Gabriel Abed, Barbados’ former ambassador to the United Arab Emirates. The board, consisting of seven members, contains key executives comparable to Richard Teng, in addition to founding members Heina Chen, Jinkai He, and Lilai Wang.