After a year of intensive scrutiny, Binance has obtained the green light to invest customers' fiat funds in the US treasury bills. The approval came on July 19 as the United States district court declared that treasury bills are open for accepting “certain” customer funds via a third-party investment manager.
What Led To The US Treasury Bills Investment Approval?
Per a court document, BAM, Binance US subsidiary, which entails a collective entity of BAM Trading Services and BAM Management US Holdings, filed a motion seeking the court’s relief from a consent order. The court’s consent approval eventually granted BAM an avenue to invest fiat funds in the US treasury bills.
For context, a treasury bill is a short-term debt obligation supported by the US Department of Treasury with one year or less maturity. Treasury bill rates depend on interest rate expectations, usually between $100 and $10 million valuations.
Court Approval Details
As directed by the court, the fiat funds in the US treasury bills should be the ones in BitGo’s custody, without a third-party influence. Meanwhile, BAM will maintain adequate USD liquidity to allow customers access to withdrawal liberty during the investment period.
In addition, the approval gave Binance maximum control over customers’ assets via their administrative and private keys to affiliated wallets. Notably, BAM trading service providers would not affect transactions involving withdrawals and transfers unless they approve them.
Possible Implications For Binance Native Token
The investment access approval to the US treasury bills resulted in a notable rise in Binance’s native token price, Binance Coin (BNB). At the time of writing, BNB is changing hands at about $598, following a 0.6% upswing in the past 24 hours.
In the past 24 hours, the token has touched minimum and maximum price levels between $583.50 and $605.50, respectively, underscoring a marked increase. Remarkably, BNB is the fourth most valuable crypto asset with a $91.97 billion market capitalization.