According to a March 17 press release, Binance no longer holds BUSD in its Secure Assets Fund for Users (SAFU) and has replaced its stablecoins with ERC-20 TUSD and BEP-20 USDT.
World’s largest cryptocurrency exchange Said Swapping is seamless and does not affect users. I also provided the address of the wallet holding the funds.
Binance said the move was necessary following Paxos’ decision to stop issuing BUSD. This will gradually reduce the market capitalization.
“This swap is to ensure that SAFU assets continue to protect users in the long run as BUSD market capitalization continues to decline over time.”
The BUSD peg to the dollar was unaffected by this announcement.
SAFU Wallet
The SAFU Fund was established in 2018 and consists of three wallets publicly shared by Binance. The exchange previously held Bitcoin, BNB, and BUSD in funds.
USDT added same address Exchanges use to hold BNB SAFU. According to on-chain data, the wallet currently holds about $450 million worth of his BNB and about $100 million worth of his USDT.
on the other hand, TUSD Wallet indicates that the exchange holds $103 million worth of stablecoins.
based on SAFU BTC Walletthe exchange currently holds 16,277 BTC in the fund.
Paxos and BUSD
New York-based blockchain company Paxos was the primary issuer of the BUSD stablecoin.
In February, the New York Department of Financial Services (NYDFS) ordered the company to stop issuing stablecoins, citing an oversight in its relationship with Binance.
In a statement at the time, the regulator said:
“The ministry is closely monitoring Paxos to ensure it is able to facilitate reimbursement in an orderly manner in accordance with its enhanced risk-based compliance protocol.”
Meanwhile, Paxos has announced that it is terminating its relationship with Binance, following regulatory orders.
The company is also reportedly facing regulatory action from the US SEC for issuing BUSD as an unregistered security. However, the regulator has not made any official move for weeks after the NYDFS order.
If the SEC decides to file a lawsuit, it could have similar consequences for other stablecoins.
