Binance Completes Conversion of SAFU Fund to USDC Stablecoin
Binance has successfully converted its Secure Asset Fund for Users (SAFU) into Circle’s USD Coin (USDC) stablecoin, as confirmed by on-chain data.
In a recent statement on April 18, Binance announced that it has transferred 100% of SAFU’s assets to the USDC stablecoin. The company emphasized that using a trusted, audited, and transparent stablecoin like USDC enhances SAFU’s reliability and ensures stability at $1 billion.
USDC is currently the second-largest stablecoin by market capitalization and is known for its transparency and compliance-first approach globally.
Following the conversion, Binance deposited 16,277 BTC (approximately $1 billion) and 1.36M BNB (valued at nearly $749 million) into its hot wallet before withdrawing $1 billion in USDC to the SAFU fund wallet.
Established in 2018, SAFU is an emergency insurance fund that protects users in extreme situations such as exchange hacks and offers potential reimbursement for unexpected losses.
In regulatory news, Binance has also made progress in India and Dubai. In India, the exchange has agreed to a $2 million fine and plans to reestablish its presence after a recent ban. Binance has committed to registering with the Financial Intelligence Unit, adhering to local taxation frameworks, and complying with the Prevention of Money Laundering Act (PMLA).
In Dubai, Binance’s CEO announced the exchange has secured its Virtual Asset Service Provider (VASP) license. This achievement followed the decision of co-founder Changpeng Zhao to give up his voting power within the exchange’s local entity.
These regulatory advancements demonstrate Binance’s commitment to compliance, especially following legal challenges with US authorities. Last year, Binance settled federal charges worth $4.3 billion due to deficiencies in its anti-money laundering (AML) protocols and violations of the Bank Secrecy Act.
