Binance US Gets Go-Ahead to Invest Customer Cash in Safe US Bonds, But With Strict Controls
A US judge has approved a plan allowing Binance's American arm to invest some customer cash in low-risk US Treasury bills. However, the decision comes with tight restrictions. Binance US cannot manage the investments themselves and must use a separate company to hold their cryptocurrency holdings. This move aims to ensure customer funds are secure and separate from Binance's operations.
Because Bitcoin
July 19, 2024
According to a recent The Block report, a US judge has given Binance's US arm the green light to invest some of its customers' cash in safe US government bonds, but with strings attached. This is part of a bigger court order that lays out the rules for how Binance can operate in the US.
The deal is this: Binance US can invest some of the dollars its customers have deposited (held by a company called BitGo) into Treasury bills. These are short-term investments, meaning the money gets paid back quickly. But there's a catch: an outside investment advisor, not Binance itself, has to be in charge of managing this money.
On top of that, Binance US also has to move all its cryptocurrency holdings to a separate company for safekeeping. This company can't be affiliated with Binance in any way. There are other restrictions too, like making sure Binance US always has enough money on hand to pay back its customers if they want to withdraw their cash.
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