{"id":581384,"date":"2023-03-17T14:31:45","date_gmt":"2023-03-17T14:31:45","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=581384"},"modified":"2023-03-17T14:46:23","modified_gmt":"2023-03-17T14:46:23","slug":"binance-swap-busd-safu-tusd-usdt","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/binance-swap-busd-safu-tusd-usdt\/","title":{"rendered":"Binance Swapped BUSD In $1 Billion SAFU Fund For TUSD And USDT Stablecoins"},"content":{"rendered":"\n<p>Summary:<\/p>\n\n\n\n<ul><li>Binance moved BUSD assets from its Secure Asset Fund for Users fund into two other stablecoins &#8211; TUSD and Tether USDT.<\/li><li>The crypto exchange made the swap with crypto trust company Paxos can no longer mint new BUSD tokens due to regulatory enforcement action from federal and state regulators.<\/li><li>SAFU&#8217;s insurance fund launched in 2018 was valued at $1 billion in January 2022 and now features BNB, BTC, TUSD, and USDT holdings<\/li><\/ul>\n\n\n\n<p>Binance swapped BUSD holdings in its Secure Asset Fund for Users (SAFU) fund to two other stablecoins, the crypto exchange <a href=\"https:\/\/www.binance.com\/en\/support\/announcement\/binance-swaps-out-busd-in-safu-fund-for-tusd-usdt-83c55e9691154f8b8914a3baaaa7ec60\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.binance.com\/en\/support\/announcement\/binance-swaps-out-busd-in-safu-fund-for-tusd-usdt-83c55e9691154f8b8914a3baaaa7ec60\" rel=\"noreferrer noopener nofollow\">announced<\/a> on Friday. The BUSD held in SAFU was transferred into TUSD, an Ethereum-based stablecoin issued by the TrustToken platform, and Tether&#8217;s USDT.<\/p>\n\n\n\n<p>Crypto&#8217;s largest centralized exchange made the swap to &#8220;ensure that assets in SAFU continue to protect users&#8221; in the long run since  Paxos can no longer mint new BUSD coins and the token&#8217;s market cap will dwindle to zero over time. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">As Paxos will no longer be minting new BUSD, <a href=\"https:\/\/twitter.com\/hashtag\/Binance?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">#Binance<\/a> has swapped the BUSD in the SAFU Fund for TUSD &amp; USDT.<br><br>This change will have no impact on users, and the funds remain on publicly verifiable addresses.<br><br>Funds are SAFU.<a href=\"https:\/\/t.co\/edLVgpdCUQ\" rel=\"nofollow\">https:\/\/t.co\/edLVgpdCUQ<\/a><\/p>&mdash; Binance (@binance) <a href=\"https:\/\/twitter.com\/binance\/status\/1636725009610571776?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">March 17, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Indeed, crypto trust company and BUSD issuer Paxos faced enforcement action from two regulators over its stablecoin. The U.S. Securities and Exchange Commission (SEC) served Paxos a Wells notice, alleging securities violations. New York&#8217;s Department of Financial Services (NYDFS) ordered that Paxos stop minting new BUSD coins. <\/p>\n\n\n\n<p>Since the Paxos saga came to light, protocols and industry players have moved to wind down their exposure to the Binance-branded stablecoin. Coinbase <a href=\"https:\/\/en.ethereumworldnews.com\/coinbase-suspend-busd-trading-march-13\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/coinbase-suspend-busd-trading-march-13\/\" rel=\"noreferrer noopener\">suspended<\/a> BUSD trading on Mar. 13. The Aave community <a href=\"https:\/\/en.ethereumworldnews.com\/aave-votes-offboard-busd-lending-pool\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/aave-votes-offboard-busd-lending-pool\/\" rel=\"noreferrer noopener\">voted<\/a> to offboard BUSD from the DeFi lender&#8217;s V2 market on Ethereum. <\/p>\n\n\n\n<p>Paxos <a href=\"https:\/\/en.ethereumworldnews.com\/busd-issuer-paxos-in-discussion-u-s-sec\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/busd-issuer-paxos-in-discussion-u-s-sec\/\" rel=\"noreferrer noopener\">engaged the SEC in &#8220;constructive talks&#8221;<\/a> after denying the securities violation claims. The crypto trust co also promised to litigate if necessary. <\/p>\n\n\n\n<h2>Binance SAFU Insurance <\/h2>\n\n\n\n<p>Binance launched SAFU in 2018 as an insurance fund to safeguard user assets, per details from the company&#8217;s website. The fund was initially financed by a mix of Binance&#8217;s own funds and a percentage of trading fees. <\/p>\n\n\n\n<p>In January 2022, SAFU was valued at $1 billion. The fund features several crypto tokens including the company&#8217;s BNB Coin, leading crypto Bitcoin (BTC), TrustToken&#8217;s TUSD, and crypto&#8217;s largest stablecoin by market cap USDT. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Binance moved BUSD from its SAFU insurance fund into USDT and TUSD since Paxos cannot mint new BUSD coins. <\/p>\n","protected":false},"author":55,"featured_media":581387,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[825,108073,947,2,26],"tags":[1119,108066,108535,108749,1811,108864],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/581384"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=581384"}],"version-history":[{"count":3,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/581384\/revisions"}],"predecessor-version":[{"id":581390,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/581384\/revisions\/581390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/581387"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=581384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=581384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=581384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}