Binance, the cryptocurrency exchange, has substituted its BUSD reserves.

 In response to Paxos' decision to discontinue the issuance of new BUSD, cryptocurrency exchange Binance has made changes by replacing its BUSD holdings in the Secure Asset Fund for Users (SAFU) with TrueUSD (TUSD) and Tether on March 17. This step was taken due to a decline in BUSD's market capitalization.

In July 2018, Binance established the Secure Asset Fund for Users (SAFU) to safeguard users' funds from security breaches and unforeseen circumstances. As of January 29, 2022, SAFU's wallets contained BNB and TUSD/USDT instead of Binance USD, and its total value was $1 billion. Binance assured users that their funds were safe and stored in publicly verifiable addresses, with BUSD remaining supported. The exchange pledged to closely monitor the fund's capitalization and periodically replenish it using its own funds.

Paxos Trust Company declared on February 13 that it was discontinuing the production of BUSD in compliance with the directives and coordination of the New York Department of Financial Services. Nevertheless, on February 16, Binance generated almost $50 million worth of TUSD, as per Etherscan records, following reports of U.S. regulators taking action against PAXOS and BUSD. This event happened just two days after Binance CEO Changpeng Zhao talked about diversifying their stablecoin portfolio away from BUSD during a Twitter Space on February 14.

The SEC's association with BUSD has raised doubts among members of the crypto community about whether the focus is on stablecoins or on Binance itself, especially since the SEC did not initiate any action against Paxos' PAX Gold (PAXG).