Binance has made a significant strategic move, converting the entire pool of assets held in its user emergency fund to USDC (USD Coin), a stablecoin issued by Circle Internet Financial.
According to Binance’s announcement, the Secure Asset Fund for Users (SAFU) exchange-traded fund, established in 2018 as a safety net for customers in extreme situations, will now consist entirely of USDC.
Previously, the fund held a mix of assets, including TUSD, BNB, Bitcoin and USDT Tether, as detailed in a Binance Academy post.
Binance’s new CEO changes strategy
The decision to move to USDC reflects the latest change in strategy under CEO Richard Teng, who took over the position from Changpeng “CZ” Zhao following a settlement with US agencies in November 2023 that resulted in a substantial fine of $4.3 billion.
Since then, Teng has overseen the spin-off of Binance’s venture capital unit and implemented stricter requirements for token listings on the platform.
Binance’s statement emphasized the advantages of using a trusted, controlled and transparent stablecoin such as USDC, which aims to maintain a price level tied to the US dollar.
Converting to USDC provides greater reliability and stability to the fund, keeping its value at $1 billion. The value of the fund can be monitored in real time via a publicly accessible blockchain address, making the process more transparent.
Chris Holland , a partner at HM, a Singapore-based consulting firm, praised the decision, stating that “the 100% USDC composition provides certainty about the dollar value of the fund.”
By taking advantage of the USDC’s stability and reliability, Binance aims to strengthen its emergency fund and provide greater confidence to its users.
Binance appoints board of directors
Earlier this month, Binance appointed a board of directors for the first time in an attempt to change its image after last year’s guilty plea to U.S. anti-money laundering and sanctions violations charges.
Gabriel Abed, former Barbados ambassador to the United Arab Emirates, was appointed chairman of the seven-member board. The other board members are CEO Richard Teng and three other company directors, namely Heina Chen, Jinkai He and Lilai Wang.
The two external members are Arnaud Ventura, managing partner at investment firm Gojo & Co, and Bayview Acquisition Corp.’s CEO Xin Wang. The formation of a board of directors and the appointment of a chairman are among the first steps taken by Binance to adopt a more conventional corporate structure after years of operating without a headquarters.
In February, the company agreed to pay $4.3 billion as part of a settlement approved by a U.S. judge. Binance’s founder, Changpeng Zhao, also pleaded guilty to AML and sanctions violations and is awaiting sentencing in April.
