Binance latest major entrant to U.S Treasury Bills market

An American judge granted Binance permission to invest some of its customers’ fiat money in US Treasury bills. The court ruling allows cryptocurrency exchange to permit customers to put fiat money into US Treasury bonds.

The District Court of Columbia’s court filing disclosed that the exchange is limited to investing in specific customer holdings under BitGo’s control.

Additionally, the exchange must guarantee that the investments come from corporate assets acquired from other companies or investors. Additionally, the business must submit its investment data every month.
According to court documents that disclose the approval, the approved US Treasury Bills “will mature on a rolling four-week basis,” with no third-party inclusion.
The court’s ruling, which permits Binance to invest client funds in US Treasury Bills, portends the potential role of cryptocurrencies in supporting the US dollar against the BRICS countries’ de-dollarization initiatives.

More precisely, collateralized stablecoins have been proposed as a way to hold US debt instruments, potentially extending US dollar dominance by decades. This would help offset some of the massive inflation caused by years of quantitative easing, subpar monetary policy, and reckless fiscal policy.

Many in the cryptocurrency world expressed optimism upon hearing the news, seeing it as a significant victory for Binance and the sector as a whole. Others predict that the action will boost the value of the BNB token.

On the X platform, discussions have surfaced indicating that the permission may impact Ethena’s USDe stablecoin. Some investors think that USDe holders may switch away from the stablecoin due to Binance’s fresh US Treasury bill investments.