Binance, one of the world's leading cryptocurrency exchanges, announced a significant change in the management of your emergency fund. The Secure Asset Fund for Users (SAFU), created in 2018 as a protective measure for customers, will now be made up entirely of USD Coin (USDC), a stable currency recognized for its stability and reliability.
This change comes after a strategic change in the company's leadership, with Richard Teng taking over as CEO, replacing Changpeng “CZ” Zhao. This leadership transition came after a significant court settlement with US authorities in November 2023, resulting in a $4,3 billion fine for the Binance.
Under Teng's new management, Binance not only changed the composition of its emergency fund, but also initiated an administrative reform, including separating the venture capital unit and implementing stricter criteria for listing new tokens. These changes aim to reinforce user confidence and the stability of the platform.
The value of SAFU is maintained close to one billion dollars, but was previously subject to fluctuations due to market volatility. By converting to USDC, the fund seeks to eliminate this instability, as USDC is designed to maintain a constant value pegged to the US dollar.
The decision was widely praised by industry experts. Chris Holland, partner at Singapore-based consulting firm HM, highlighted the importance of this change: “the 100% composition of USDC gives certainty to the value of the fund in US dollar terms.”
Additionally, this month, Binance established its first board of directors, marking another important step in the company's restructuring. Gabriel Abed, former ambassador of Barbados to the United Arab Emirates, was appointed chairman of the board, which also includes Richard Teng and other executive members, as well as two external members.
This set of measures reflects an ongoing effort by Binance to improve its governance and transparency, especially following recent legal penalties and accusations of poor practices in the US.
