Binance replaces BUSD in SAFU fund with TUSD

and USDT

Binance assured users that the change would not impact them in any way and that their funds would continue to be held in publicly verifiable addresses.

Cryptocurrency exchange Binance announced on March 17 that it has replaced the Binance USD BUSD $1.00 holdings in its Secure Asset Fund for Users (SAFU) with TrueUSD (TUSD) and Tether USDT $1.00

The move comes in response to Paxos’ recent move to stop minting new BUSD, which has led to the asset’s market capitalization falling.

SAFU is an emergency insurance fund established by Binance in July 2018 to protect users’ funds in case of security breaches or other unforeseen events. Binance committed a percentage of trading fees to grow the fund, which was valued at $1 billion as of Jan. 29, 2022. SAFU’s wallets initially consisted of BNB $336, Bitcoin $28,129 and Binance USD — which has now been replaced by TUSD and USDT.

Binance assured users that the change would not impact them, their funds would continue to be held in publicly verifiable addresses, and BUSD would continue to be supported. The exchange added that it would closely monitor the fund to ensure that it remains sufficiently capitalized and top it up periodically as necessary using its own funds.

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