The American branch of crypto exchange Binance has just received court permission to invest its customers’ assets in US government bonds (T-bills).
In a order On July 19, District of Columbia Judge Amy Berman Jackson gave Binance.US the green light to invest “certain customer fiat funds” now held by digital asset trust company BitGo in four-week rolling T-bills.
However, Binance.US must meet certain conditions. Third parties are not allowed to be involved in the investment. The exchange is also required to maintain sufficient amounts of US dollars on its platform so that it can honor expected fiat withdrawal requests from clients during the period it will invest client assets.
The company has also been allowed to invest its business assets with third-party investment advisors and companies, as long as the funds are not invested back into entities related to Binance.
Binance.US is also authorized to transfer crypto assets to wallets offered by unaffiliated third-party custodians in the US. But all transfers and withdrawals require the approval of both the exchange and the custodian.
Binance entities cannot have ownership, custody or control the assets held in these portfolios, according to the court order.
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Generated image: Midjourney