Binance has officially received court approval to invest US customer fiat funds into US Treasury Bills. A recent court filing confirmed that the exchange is authorized to invest “certain customer assets” into United States debt securities.
Details of the Approval and Investment Strategy
Just two days ago, Binance released an informative breakdown on US Treasury Bills, explaining how they work and raise money for the government. They highlighted the low-risk nature of these investments and their role in the modern financial landscape.
The court filing elaborates that Binance can invest customer fiat funds currently held at BitGo into these debt securities. These investments are short-term government-issued debt securities, typically issued to meet specific financial needs. The filing specifies that the US Treasury Bills will mature on a rolling four-week basis, with no third-party involvement. Additionally, Binance must maintain sufficient USD on its platform to cover all expected customer fiat withdrawal requests.
Binance’s Regulatory Challenges and Recent Developments
Binance recently settled criminal charges with the US Justice Department in November, following a lengthy investigation that culminated in a $4.3 billion fine. This settlement also led to the resignation of then-CEO Changpeng Zhao.
Despite these challenges, Binance appears to be navigating through its regulatory issues in the US. The exchange paid the hefty fine to the DOJ and saw the SEC drop its investigation into Paxos over the issuance of the Binance USD stablecoin.
