Cryptocurrency exchange Binance has successfully completed a significant transformation of its Secure Asset Fund for Users (SAFU), converting the entire fund into Bitcoin. This move concludes the exchange’s ambitious plan to shift $1 billion in stablecoin reserves into Bitcoin, culminating in the purchase of an additional 4,545 BTC. As a result, SAFU now holds a total of 15,000 BTC, which is valued at approximately $1.005 billion, based on a Bitcoin price of $67,000 at the time of the completion announcement.
SAFU was initially established to safeguard users against losses stemming from unforeseen incidents, such as hacking events. Originally, the fund was backed by a diverse range of assets, including stablecoins. However, under the newly adopted framework, SAFU is now completely denominated in Bitcoin. Binance has also committed to replenishing SAFU’s reserves if they fall below $800 million due to market fluctuations, demonstrating a proactive approach to user protection.
The transition took place within a 30-day period, aligning with the timeline the exchange had initially set for this strategic shift. The transformation dates back to late January when Binance first disclosed its intention to convert $1 billion held in dollar-pegged tokens into Bitcoin. This decisive move reinforces Binance’s perception of Bitcoin as a long-term reserve asset.
The trend of companies reallocating portions of their treasuries from traditional fiat holdings into Bitcoin has been on the rise in recent years. This shift indicates a growing institutional recognition of Bitcoin’s qualities as a long-term store of value, especially in the context of ongoing inflationary pressures and low yields on conventional assets.
On February 2, Binance took an initial step in this transition by transferring 1,315 BTC, valued at around $100 million at the time, from its hot wallets into SAFU. This marked the commencement of what would evolve into one of the largest reallocations into Bitcoin made by a cryptocurrency exchange.
Binance’s dedication to a fully Bitcoin-backed SAFU not only emphasizes its confidence in Bitcoin as the preeminent long-term reserve asset but also aligns it with a broader trend in the industry highlighting the increasing acceptance of Bitcoin among corporate treasuries.
