Binance has begun shifting its $1 billion user protection fund into bitcoin, converting stablecoin reserves as part of a broader move to anchor SAFU in what it calls crypto’s most durable asset.
Binance Begins $1B Bitcoin Accumulation Plan With First $100M Allocation
Crypto exchange Binance shared on social media platform X on Feb. 2 that it has completed the first stage of its Secure Asset Fund for Users (SAFU) conversion. The update confirmed that a portion of SAFU reserves has been converted from stablecoins into bitcoin.
The company stated:
“Binance has completed the first batch of bitcoin conversion for the SAFU Fund, amounting to 100M USD stablecoins.”
Binance also shared a confirmed on-chain transaction with the update, indicating that roughly 1,350 BTC has already been converted as part of the SAFU process. The transfer was valued at about $107 million at the time.
Read more: Binance Doubles Down on Bitcoin: Buying $1B BTC Within 30 Days
This transaction update builds on an open letter Binance released on Jan. 29 outlining measures to reinforce user protection, compliance cooperation, transparency, and long-term industry development. In that letter, the exchange detailed its decision to convert the SAFU fund’s $1 billion USDC balance into bitcoin within 30 days, framing the move as a structural allocation choice anchored in asset durability. The letter explains:
“Guided by our belief that BTC serves as the core asset in the crypto ecosystem and represents long-term value, Binance will continue to stand alongside our industry through market cycles and uncertainty, continuously investing resources into the crypto ecosystem.”
The crypto firm also clarified that after conversion it will monitor the fund’s market value and rebalance if it falls below $800 million, restoring it to $1 billion as needed.
FAQ ⏰
- What did Binance convert in the SAFU fund?
Binance converted $100 million in stablecoins from the SAFU fund into bitcoin as the first batch of a larger plan.
- How much bitcoin was moved in the SAFU transaction?
The on-chain transaction transferred about 1,350 bitcoin valued near $107 million at the time.
- Why is Binance converting SAFU funds into bitcoin?
Binance said the move reflects its view of bitcoin as the core long-term asset in the crypto ecosystem.
- How will Binance manage SAFU after the conversion?
Binance plans to monitor the fund’s value and rebalance it back to $1 billion if it drops below $800 million.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
U.S. Bitcoin reserves expand to enter the top 20 globally, Tinder founder increases purchase by 1.8 million shares
American Bitcoin Company (ABTC) Bitcoin reserves increase to 6,500 coins, ranking among the top 20 publicly listed companies worldwide. Despite stock price fluctuations, the reserve news prompted an 11.7% rise in stock price. ABTC is expanding its mining machine hash rate and plans to invest in reducing Bitcoin acquisition costs. Board member Tinder founder recently increased his holdings by purchasing 1.8 million shares.
ChainNewsAbmedia19m ago
Vancouver City Government in Canada has decided to terminate the Bitcoin reserve proposal after legal review.
Vancouver city government employees recommend terminating the "Bitcoin Friendly City" motion due to regulations prohibiting Bitcoin from being used as a municipal reserve asset. The motion was proposed by Mayor Ken Sim and aimed to explore the possibility of accepting cryptocurrency for taxes and converting financial reserves into Bitcoin, but it is restricted by provincial laws.
GateNews32m ago
Vancouver Moves to Close Bitcoin Reserve Proposal After Legal Review
In brief
City staff have concluded the Vancouver Charter does not allow Bitcoin in city reserves.
The motion followed a late 2024 decree by Mayor Ken Sim to study crypto use.
Municipal finance rules keep assets like Bitcoin outside treasuries, Decrypt was told.
Vancouver staff have
Decrypt44m ago
Data: Yesterday, the US Bitcoin spot ETF experienced a net outflow of $240.14 million.
Cryptocurrency analyst Trader T has detected that US Bitcoin spot ETFs experienced a net outflow of $240.14 million yesterday, primarily due to net outflows from multiple ETFs including BlackRock, Fidelity, and Bitwise, while Valkyrie's ETF saw a small net inflow.
GateNews52m ago
Construction Begins on Quantum Facility Capable of Breaking Bitcoin
The quantum computing race is edging closer to a commercially viable milestone, with PsiQuantum revealing progress toward a facility that could house a million qubits. The company, which has tied its plans to a collaboration with Nvidia, says the ambitious Chicago site will rely on advanced error-to
CryptoBreaking1h ago
Bitcoin mining companies have sold over 15,000 BTC since October last year, indicating a shift in industry holding strategies.
Since October last year, publicly listed Bitcoin mining companies have sold over 15,000 BTC, indicating a shift from holding strategies to selling. Many companies are participating in the sell-off, profit margins are narrowing, and the industry faces severe challenges. MARA Holdings has attracted attention for its flexible trading strategy, holding over 53,000 BTC.
GateNews1h ago
