Binance has received court approval to invest customer fiat funds into US Treasury Bills (T-Bills), marking a significant milestone for the exchange’s operations in the United States. This decision has led to a notable price surge for Binance Coin (BNB), the platform’s native token, with its value approaching the $600 mark.
The court granted relief to Binance’s subsidiary, BAM Trading Services, and BAM Management US Holdings, allowing them to hire third-party investment advisors to manage corporate assets. Consequently, BAM can now invest client fiat funds in US Treasury Bills on a rolling four-week basis. However, the court has prohibited the involvement of any third parties, including Binance Entities, in these investments. BAM must also ensure sufficient USD liquidity on its platform to honor customer fiat withdrawal requests during the investment period.
Notably, BAM is now permitted to custody assets with and transfer assets to wallets provided by non-affiliated third-party custodians in the United States. However, to maintain control over customer assets, BAM Trading officers and employees based in the US will solely direct and manage the wallets’ private and administrative keys, with approval required from both BAM Trading and the respective third-party custodian for transfers and withdrawals. This arrangement ensures that Binance Entities do not have possession, custody, or control over assets held in these wallets.
This court approval comes after Binance agreed to a $4.3 billion settlement with the US government in November. As part of the settlement, the former CEO, Changpeng Zhao (CZ), faced charges of violating the Bank Secrecy Act and stepped down from his position.
Following this positive news, the price of BNB has risen by over 5%, reaching $597. Over the past two weeks, the token has experienced significant gains in line with the overall market recovery. Despite this, BNB is still down 17% from its all-time high of $717 set on June 6th. The token has also surpassed the 200-day exponential moving average (EMA), indicating further price appreciation. However, it may encounter resistance at various levels in the event of a continued price recovery.
Overall, the court approval for Binance to invest in US Treasury Bills has boosted the confidence and valuation of the Binance Coin, providing a positive outlook for the exchange’s operations in the United States.