Binance converts its billion-dollar 'Safu' emergency fund into USDC

Binance, the global crypto exchange behemoth, is shifting its Secure Asset Fund for Users (SAFU) into a different gear by converting it entirely into Circle’s USD Coin (USDC). As a safety net established in 2018 to protect Binance users from potential exchange hacks, SAFU is no small-time operation. By transitioning into USDC, the fund is placing its $1 billion nest egg into what Binance describes as a “trusted, audited, and transparent stablecoin.”

This pivot isn’t just a shuffle of digital coins—it has nudged the SAFU’s representation to 3% of the total circulating supply of USDC, tipping the scales at an impressive $32.6 billion. With a mere $1.88 transaction fee, Binance’s wallet address reportedly moved an eye-popping 800 million USDC on Ethereum’s blockchain.

But the funds didn’t stop there. Alongside this hefty transaction, Binance also orchestrated the transfer of about 1.36 million BNB, valued at around $754 million, and a significant 16,277 BTC, as part of this strategic asset realignment.

This overhaul isn’t Binance’s first rodeo. Just over a year ago, the exchange made headlines by swapping out Binance USD (BUSD) in SAFU for a combination of Tether (USDT) and TrueUSD (TUSD), in a proactive response to a regulatory clampdown on Paxos, the issuer of BUSD.

With Tether's USDT still dominating the market with a 69% share, and Circle’s USDC supply ballooning by 33% since last December, Binance’s latest move underscores the dynamic, ever-evolving landscape of crypto economics where the exchange continues to play a significant role.