A significant decision was made. BinanceThe world’s largest cryptocurrency exchange has changed the composition of the emergency fund. It now uses stablecoins to provide stability in a volatile market.
What happened?Binance’s user-emergency fund has been converted into USDC, which is a stablecoin tied to the U.S. Dollar, according to Bloomberg reported On Thursday,
Binance established the Secure Asset Fund for Users in 2018. This fund provides financial security for its users when faced with extreme circumstances.
The CEO is the leader of all operations Richard TengWho succeeded? Changpeng Zhao Binance’s strategic direction has changed significantly following an important legal settlement reached with U.S. government agencies. Binance has made a series of strategic changes, including the spin-off of its venture investment arm and tighter requirements for token listings.
SAFU, which is usually around $1 billion, fluctuates in accordance with the market. Binance has switched to USDC in order to improve the stability and reliability of the SAFU fund. The value can now be tracked via the blockchain, allowing for real-time tracking.
Chris Holland a partner at HMSingapore-based compliance consultant emphasized the significance of this move.
The fund’s value in U.S. dollars is guaranteed by the 100% USDC composition.
What It MeansIt is not surprising that the decision was made to convert SAFU to USDC. Binance Binance is on the path to regulatory compliance and maturity in its operations. Binance CEO Teng highlighted Binance’s evolutionary path Beyond its initial operational style Particularly after the $4.3 billion settlement reached with U.S. Department of Justice.
Binance has been working to improve its platform in the face of market volatility. This is an overview of the An Analyst’s Warning That’s a significant drop in Bitcoin BTC/USD Binance could liquidate over $15 billion if the price is set at $50,500. This highlights the need for a safety net that users can rely on.
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