The exchange Binance has formally started the SAFU fund conversion to Bitcoin, executing an initial purchase of 1,315 units of the cryptocurrency for an approximate value of 101 million dollars. According to data from Blockchain.com, the operation was carried out at an average price of $77,409.89 per coin, taking advantage of the recent market correction.
This financial maneuver marks the beginning of a 27-day plan to move the 1 billion dollars of the emergency fund, originally stored in stablecoins, toward digital reserve assets. In this way, the platform seeks to guarantee a solid and decentralized backup that acts as a safety net in the face of extreme incidents, such as security breaches or unforeseen operational losses.
Historically, the Secure Asset Fund for Users (SAFU) has migrated between various assets, moving from BUSD to USDC in 2024 to maintain dollar-linked liquidity. However, the current transition toward BTC reflects the company’s vision of positioning the leading cryptocurrency as the fundamental asset of the ecosystem, prioritizing long-term resilience over dependence on stablecoin issuers.
How does current volatility affect Binance’s protection fund?
Despite the fact that the market has suffered a generalized decline, Binance maintains a buying power of 900 million dollars to complete the total allocation of assets over the coming weeks. Therefore, the strategy aligns with the accumulation signals of other major corporate players, who see current prices as a strategic opportunity to strengthen their balances in the face of global uncertainty.
Binance’s decision to rebalance the fund if it falls below 800 million dollars ensures that user protection remains fully intact. Furthermore, by eliminating the counterparty risk associated with fiat-backed assets, the firm reinforces its commitment to crypto-native principles, allowing the SAFU fund to operate autonomously and provide an additional layer of institutional trust during periods of high market volatility.
Ultimately, the SAFU fund conversion to Bitcoin positions Binance as one of the largest corporate holders in the world, surpassing the treasury reserves of several renowned tech companies. It is expected that once the purchase process is finalized, the exchange will continue monitoring the market value to make proactive adjustments that maintain the one billion dollar target as a security guarantee.
