In a significant move, Binance announced its decision to convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users (SAFU) entirely into bitcoin over the next 30 days. This strategic transition will take place gradually, accompanied by regular audits to ensure transparency and security.
The exchange pledged to replenish the SAFU fund if the value of the reserves dipped below $800 million due to volatility in bitcoin prices. To maintain its commitment to user security, Binance will utilize its treasury reserves to restore the fund back to its intended $1 billion size. The SAFU, which Binance launched in 2018, serves as a safeguard for users against losses arising from extreme events such as hacking incidents or major system failures. The fund is financed through a portion of Binance’s trading fees and is kept separate from user assets in cold wallets.
Binance has consistently highlighted SAFU as a critical element of its risk management and trust framework. In a statement posted on X, the exchange emphasized that this initiative aligns with its long-term efforts to enhance the cryptocurrency industry. “We will continue advancing related work and gradually share progress with the community,” the statement noted.
The announcement comes at a time of heightened market stress, as bitcoin has experienced a notable decline from its recent highs. The current price movements have sparked discussions surrounding exchange infrastructure and transparency, making Binance’s re-denomination of SAFU in bitcoin particularly noteworthy. The exchange views this action as a demonstration of its confidence in bitcoin’s long-term significance within the cryptocurrency ecosystem, asserting that bitcoin should be regarded not just as a trading instrument but as the foundational reserve asset of the industry. Future reviews could consider allocations to other “core assets,” including the exchange’s native BNB token.
SAFU had previously been activated in 2019, when the fund covered losses from a security breach that resulted in the theft of approximately 7,000 BTC. Binance reimbursed those affected in full, ensuring that user account balances remained unaffected. Since then, the fund has functioned primarily as an assurance mechanism rather than an actively used resource.
As of the latest data, bitcoin is trading below $83,000, having dropped 6% over the past 24 hours. This decline has been driven by heavy selling activity, resulting in daily trading volumes of around $94 billion. The price is down 6% from its seven-day high of $87,883 but remains approximately 2% above its weekly low of $81,315 recorded late Thursday night. Currently, bitcoin’s circulating supply is at 19,982,315 BTC out of a total cap of 21 million, leading to a global market capitalization of about $1.65 trillion, which has also seen a 6% decrease on the day.
