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The cryptocurrency exchange has completed a 30-day initiative to convert its stablecoin-backed user protection fund into 15,000 BTC, solidifying bitcoin as its primary reserve asset for the long haul.
Binance has completed the $1 billion transition of stablecoin reserves into bitcoin. (CoinDesk)
Key points:
- Binance acquired a final 4,545 bitcoin, increasing SAFU holdings to 15,000 BTC valued at approximately $1 billion upon completion.
- This action follows an announcement made on January 30, indicating the exchange’s intent to convert $1 billion in stablecoins into bitcoin.
- SAFU, designed to safeguard users against hacks and unexpected losses, is now entirely backed by bitcoin, with a commitment to replenish funds if their value falls below $800 million.
The cryptocurrency exchange Binance has concluded the last phase of its strategy to fully convert the Secure Asset Fund for Users (SAFU) into bitcoin , completing a $1 billion conversion from stablecoin reserves to BTC.
The exchange secured a final batch of 4,545 BTC, raising SAFU’s total assets to 15,000 BTC, estimated at around $1.005 billion based on a bitcoin price of $67,000 at the conclusion of this process, as noted in a post on X on Thursday.
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The leading cryptocurrency was trading around $67,500 at the time of publication.
SAFU, which was established to protect users from unexpected losses such as hacks, was initially supported by a variety of assets including stablecoins. Under the new structure, the fund is now completely denominated in bitcoin. Binance has also committed to replenishing the reserve if its value declines below $800 million due to market fluctuations.
The 30-day transition was finalized in accordance with the timeline Binance established when it first revealed the strategic shift. This initiative dates back to late January when the exchange disclosed plans to convert $1 billion in dollar-pegged tokens held in SAFU into bitcoin, reinforcing its perspective on BTC as a long-term reserve asset.
A growing number of organizations have started to embrace bitcoin as a strategic reserve asset in recent years, reallocating portions of their treasuries from traditional fiat holdings to BTC. This trend reflects an increasing institutional acceptance of bitcoin’s long-term value retention capabilities amid ongoing inflationary pressures and low returns on conventional assets.
Binance took an early on-chain step in this process on February 2, transferring 1,315 BTC, valued at approximately $100 million, from its hot wallets into SAFU. That transaction marked the beginning of what would become one of the largest single treasury-style reallocations into bitcoin by a cryptocurrency exchange.
Binance stated that the fully bitcoin-backed SAFU highlights its confidence in BTC as the foremost long-term reserve asset.
