Cryptocurrency exchange Binance announced that it has swapped out Binance USD(BUSD) holdings in the Secure Asset Fund for Users (SAFU) for TrueUSD (TUSD) and Tether (USDT), citing the termination of BUSD minting from Paxos.
On February 13, 2023, Paxos announced that it has suspended the issuance of new BUSD tokens and terminated its association with Binance.
As Paxos will no longer be minting new BUSD, #Binance has swapped the BUSD in the SAFU Fund for TUSD & USDT.— Binance (@binance) March 17, 2023
This change will have no impact on users, and the funds remain on publicly verifiable addresses.
Funds are SAFU.https://t.co/edLVgpdCUQ
"This swap is to ensure that assets in SAFU continue to protect users in the long term as the BUSD market capitalization continues to decrease over time." Binance said in the statement.
"This change will be of no impact on users, and these funds will continue to be on publicly verifiable addresses. BUSD will continue to be supported on Binance. The SAFU fund will be observed closely to ensure that it is sufficiently capitalized, and topped up periodically, as necessary, using Binance’s own funds." the firm added.