Court approves! Binance US can invest some customers' fiat assets in US Treasury bonds
The U.S. court has approved Binance.US to invest a portion of some customers' fiat assets in U.S. Treasury securities. In addition, Binance.US is also required to transfer cryptocurrencies to a third-party custodian not affiliated with the exchange.
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Partial Customer Fiat Investments Allowed in US Treasury Bonds
In February, a US court approved Binance's plea agreement, requiring the exchange to pay a record $4.3 billion fine. As part of the settlement, the company's compliance will be overseen by an independent monitor for five years, and significant operational decisions will require court approval.
According to an order signed by US District Court Judge Amy Berman Jackson on Friday, BAM Trading Services Inc. and BAM Management US Holdings Inc., entities in the US affiliated with Binance.US, can collaborate with third-party investment advisors to invest a portion of BitGo's customer fiat assets in US Treasury bonds maturing in less than four weeks, while maintaining sufficient USD on the platform to meet customer withdrawal demands.
Cryptocurrency Must Be Transferred to Non-Binance Custodians
Binance.US is also required to transfer cryptocurrency to custodians not affiliated with the exchange.
BAM must custody assets in wallets provided by one or more non-affiliated custodians in the US and transfer assets to those wallets, subject to:
- Control of customer assets in wallets provided by third-party custodians, including management and maintenance of new private keys and key material, is restricted to BAM Trading personnel and employees in the US or third-party custodians in the US
- If BAM Trading holds new private keys and management keys provided by third-party custodians, these keys must be held and controlled by BAM Trading personnel in the US
- All transfers and withdrawals require approval from BAM Trading and, when necessary, approval from third-party custodians
- Binance entities will not possess, hold, or control any assets in wallets provided by third-party custodians
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