On Friday, Binance’s U.S. affiliate received approval from a federal judge to invest certain customer assets in U.S. Treasury bills. This ruling lifts restrictions previously imposed by the U.S. Securities and Exchange Commission (SEC), according to Binance.US.
The court order mandates Binance.US to transfer cryptocurrency to a third-party custodian that is not affiliated with the exchange. Additionally, the operator of Binance.US, BAM, has been granted permission to invest certain customer fiat funds, which are held at the crypto custody firm BitGo, into U.S. Treasury bills. These investments will mature on a rolling four-week basis, ensuring no involvement from third parties, including Binance entities, as stipulated by the court order.
Treasury bills, often referred to as T-bills, are short-term government securities that mature within a year. Known for their low risk, they are considered one of the safest investments, backed by the full faith and credit of the U.S. government. This move could enhance customer confidence in Binance.US, reassuring users about the security and prudent management of their assets.
The SEC’s allegations against Binance last June accused the exchange, its CEO and founder Changpeng Zhao, and the operator of Binance.US of artificially inflating trading volumes, misappropriating customer funds, allowing U.S. customers to access its platform without proper restrictions, and misleading investors about its market surveillance controls. Following these allegations, Binance and Binance.US reached an agreement with the SEC to ensure that U.S. customer assets would remain within the United States.
The decision also reflects a growing trend among cryptocurrency platforms to integrate more traditional financial instruments into their asset management strategies. By leveraging Treasury bills, Binance.US is taking a step towards bridging the gap between conventional financial systems and the emerging digital asset economy.
