Back on January 29, 2022, Binance unveiled the “Secure Asset Fund for Users (SAFU), which is an emergency insurance fund valued at $1 billion to safeguard its users from any catastrophic event. The SAFU fund wallets were initially stocked with BNB, BUSD, and BTC. However, in light of Paxos being asked to stop minting new BUSD by the New York state regulators, Binance has swapped out BUSD assets in the fund for two major stablecoins competing in the market.
The Binance exchange has chosen TrueUSD (TUSD) and Tether (USDT) as their preferred option for replacing BUSD. With the BUSD market value steadily declining over time, this swap will make sure that assets in SAFU continue to safeguard users over the long term. With the BUSD market value steadily declining over time, this swap will make sure that assets in SAFU continue to safeguard users over the long term.
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