Binance has completed the full conversion of its Secure Asset Fund for Users, known as SAFU, into Bitcoin. The fund, valued at about $1 billion, now sits entirely in BTC. This move highlights the exchange’s growing confidence in Bitcoin as a long term reserve asset.
The transition began on January 30 and wrapped up within 30 days. On February 12, Binance confirmed its final purchase of 4,545 BTC. That transaction brought the SAFU wallet’s total holdings to nearly 15,000 BTC. Based on current prices, the reserve stands at just over $1 billion.
Why Binance Shifted SAFU to Bitcoin
Binance created SAFU in 2018 to protect users during hacks or extreme market stress. In the past, the exchange held the fund in stablecoins to preserve steady value. However, the company now believes Bitcoin offers stronger long term potential.
Binance stated that Bitcoin serves as the premier reserve asset in crypto. Therefore, it aligned its emergency fund with BTC instead of stablecoins.
Key details of the conversion include:
- Final purchase of 4,545 BTC
- Total holdings of დაახლოებით 15,000 BTC
- Current valuation of about $1.005 billion
- Public release of wallet address and transaction hash
By publishing on chain data, Binance aimed to boost transparency and user trust.
Managing Volatility Risks
Bitcoin’s price can swing sharply. As a result, some critics question the decision to link a safety fund to a volatile asset. A sudden drop in BTC could reduce the fund’s value.
However, Binance said it will actively monitor the reserve. If Bitcoin’s price pushes the fund below a reported $800 million floor, the exchange plans to rebalance or add more assets.
What This Means for the Crypto Market
This strategic pivot ties Binance’s safety net directly to Bitcoin’s price action. Supporters argue it reinforces confidence in BTC and strengthens its role in crypto treasury management.
Furthermore, the move may influence how other exchanges manage reserve funds. As regulation evolves, more platforms could rethink how they structure user protection funds.
