Binance Converts Emergency Fund to USDC and Appoints Board of Directors: Latest Updates
Binance Converts Emergency Fund to USDC Stablecoin Under New CEO’s Leadership
In a bold strategic move, Binance, one of the world’s largest cryptocurrency exchanges, has converted its entire emergency fund for users into USDC (USD Coin), a stablecoin issued by Circle Internet Financial. The exchange’s Secure Asset Fund for Users (SAFU), initially established in 2018 as a safety net for customers during extreme situations, will now consist entirely of USDC, according to a recent announcement by Binance.
Under the leadership of new CEO Richard Teng, who took over from Changpeng “CZ” Zhao following a plea deal with US agencies in November 2023, Binance has made significant changes to its strategy. Teng has overseen the spin-off of Binance’s venture capital unit and implemented stricter requirements for token listings on the platform.
The decision to shift to USDC reflects the latest shift in strategy, aiming to provide enhanced reliability and stability for the fund, ensuring it remains at the $1 billion mark. The value of the fund can be monitored in real-time through a publicly available blockchain address, adding transparency to the process.
Chris Holland, a partner at HM, a compliance consultancy firm based in Singapore, praised the decision, stating that the “100% USDC composition gives certainty to the value of the fund in US dollar terms.” By leveraging the stability and trustworthiness of USDC, Binance aims to strengthen its emergency fund and provide increased confidence to its users.
In addition to the conversion of the emergency fund, Binance recently appointed a board of directors for the first time, with Gabriel Abed, former ambassador of Barbados to the United Arab Emirates, serving as the chairman. The move is part of Binance’s efforts to reshape its image following last year’s guilty plea to US charges of anti-money laundering and sanctions violations.
Establishing a board and appointing a chairman are among the first steps Binance has taken to adopt a more conventional corporate structure after years of operating without a headquarters. The company agreed to pay $4.3 billion in February as part of a plea deal approved by a US judge, with founder Changpeng Zhao also pleading guilty to anti-money laundering and sanctions violations.
Overall, these recent developments at Binance signal a new era for the exchange under the leadership of CEO Richard Teng, with a focus on transparency, stability, and compliance to rebuild trust with users and regulators alike.
