Binance has launched its $1 billion SAFU conversion into Bitcoin with a $100 million purchase, shifting its user protection fund from stablecoins to BTC.
Crypto exchange Binance has purchased its first 1,315 Bitcoin as a part of its Secure Asset Fund for Users (SAFU) transition plan.
According to data from Blockchain.com, $101 million price of Bitcoin (BTC) was purchased at a mean price of $77,409.89 per coin. Binance expects the rest of SAFU's $1 billion to be shifted from stablecoins to Bitcoin inside the subsequent 27 days.
A Binance spokesperson told Cointelegraph on Friday that the SAFU fund will proceed for use as a backup for users within the event of maximum events or losses.
Binance converts $100 million into BTC. Source: Blockchain.com
Binance is moving SAFU reserves from USDC to BTC
Launched in 2018, the SAFU fund is a dedicated user protection pool funded by Binance trading fees. In 2024, Binance shifted SAFU's stablecoin portion from BUSD to USDC. The exchange positioned this move as a method to keep the emergency fund liquid, reliable and pegged to the US dollar.
The recent move to BTC completely removes SAFU from stablecoins and effectively supports user protection through the asset, which Binance considers to be the industry's most significant long-term store of value.
Binance still has around $900 million in purchasing power dedicated to BTC allocations.
The move comes as markets are reeling from a pointy crypto sell-off that saw the worth of BTC briefly fall below $75,000.
Bitcoin price chart. Source: CoinMarketCap
It also follows recent buy-the-dip signals from Michael Saylor's strategy that suggested more Bitcoin could be added after the weekend's crash pushed BTC below its cost base.
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