• Binance announced that it will no longer hold BUSD in its Secure Asset Fund for Users (SAFU) and has swapped the stablecoin for ERC-20 TUSD and BEP-20 USDT.
• The move was necessary following Paxos‘ decision to stop minting BUSD — which will result in a gradual market cap reduction.
• SAFU currently holds 16,277 BTC, $450 million worth of BNB, about $100 million in USDT, and $100.3 million worth of TUSD.
Binance Removes BUSD from SAFU Fund
Binance has announced that it will no longer include the stablecoin BUSD in its Secure Asset Fund for Users (SAFU), and instead swap it out for ERC-20 TUSD and BEP-20 USDT. This move is due to Paxos‘ decision to stop minting BUSD, resulting in a gradual market cap reduction.
Current Assets in SAFU
The SAFU fund currently holds 16,277 Bitcoin (BTC), worth around $428 million as of press time; $450 million worth of Binance Coin (BNB); about $100 million in USDT; and $100.3 million worth of TUSD.
Paxos and BUSD
New York-based blockchain firm Paxos was primarily responsible for issuing the stablecoin, but came under scrutiny from the New York Department of Financial Services (NYDFS) after oversights were discovered in their relationship with Binance. In response they have agreed to adhere to NYDFS orders and end their relationship with them. There are also reportedly regulatory actions being taken by the U.S SEC over issuing an unregistered security with regards to this matter as well.
No Impact on Peg
Despite these changes taking place, there has been no effect on the peg to the dollar that is associated with this coin – meaning its value remains unaffected by these events taking place around it outside of any general market conditions or trends that may occur over time.
Overall, this news highlights how swiftly regulations can be put into place when needed, whilst also showing how powerful organizations such as NYDFS can be when monitoring potential oversights within companies operating within its jurisdiction – ensuring user safety remains at all times regardless of any changes taking place around them like these ones being discussed here today with regards to what is being held inside the Safe Asset Fund for Users (SAFU).