In a surprising move, Binance has completely converted its emergency fund for users into USDC (USD Coin) stablecoin.

The move, detailed in a recent Binance Academy post, indicates that the fund, known as the Secure Asset Fund for Users (SAFU), contained a mix of assets such as TUSD, Bitcoin, BNB, and Tether’s USDT. According to the report, SAFU, created in 2018 to provide a financial safety net for customers during turbulent times, will now only contain USDC stablecoins, probably due to the stablecoin’s status as the most liquid on centralized exchanges.

Switching to USDC

This step is part of CEO Richard Teng’s reshaping plan, which includes separating Binance’s venture capital arm and tightening token listing criteria. The SAFU fund’s value is typically around $1 billion, but it has fluctuated due to market changes.

Binance’s decision to switch to USDC demonstrates the benefits of a stable, audited, and transparent token pegged to the USD’s value. Moreover, the move improves the fund’s reliability and consistency while maintaining its $1 billion benchmark.

Another benefit of the move is that it enhances transparency because the fund’s value can be tracked using a public blockchain address. Binance hopes that embracing USDC’s stability and credibility can strengthen its emergency fund and instill greater user trust.

Binance Names New Board

Meanwhile, Binance unveiled its inaugural board of directors earlier this month. The move aims to rebuild the crypto firm’s reputation following a guilty plea to the US authorities’ charges of anti-money laundering and sanctions violations.

Gabriel Abed, the former Barbados ambassador to the United Arab Emirates, leads this new board. Six other members of the board include Binance CEO Richard Teng and the company executives — Jinkai He, Heina Chen, and Lilai Wang.

In addition, two external associates were also appointed — Xin Wang, Bayview Acquisition Corp., CEO and Arnaud Ventura from Gojo & Co. For years, Binance operated without a centralized headquarters, but forming a board and appointing a chair indicate a shift toward a more traditional corporate structure. In February, a US judge approved a plea deal in which Binance agreed to pay $4.3 billion.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.