Binance has completed the full conversion of its Secure Asset Fund for Users into bitcoin, finalizing a 1 billion dollar transition from stablecoin reserves into BTC. The move marks one of the largest treasury style reallocations by a cryptocurrency exchange and reinforces the company’s long term conviction in bitcoin as a reserve asset.
The exchange confirmed it purchased a final tranche of 4545 bitcoin, bringing the total holdings of the SAFU fund to 15000 BTC. At prevailing market prices near 67000 dollars per coin at the time of completion, the reserve was valued at just over 1 billion dollars. Bitcoin was trading close to 67500 dollars during the latest session.
SAFU was originally established as a user protection mechanism designed to cover potential losses from unforeseen incidents such as exchange hacks or operational disruptions. Historically, the fund was backed by a diversified mix of assets including dollar pegged stablecoins. Under the new structure, the entire reserve is now denominated in bitcoin.
Binance initially announced its intention to shift the fund into BTC in late January, outlining a 30 day conversion plan. The strategy was executed within that timeframe, with incremental onchain transfers signaling the start of the transition earlier this month. One of the early transactions involved moving over 1300 BTC into the fund, marking a significant step toward full conversion.
The exchange also committed to maintaining the value of the protection fund above 800 million dollars. Should market volatility push the fund’s valuation below that threshold, Binance stated it would replenish holdings to ensure adequate coverage for users.
The decision aligns with a broader trend of institutions and corporations adopting bitcoin as a strategic reserve asset. Over the past several years, companies across technology and financial sectors have shifted portions of their treasury holdings into BTC, citing its scarcity, decentralized structure, and potential as a hedge against inflationary pressures.
For Binance, the move underscores confidence in bitcoin’s role as the primary long term store of value within the digital asset ecosystem. By backing its safety net entirely with BTC, the exchange is signaling that it views bitcoin not only as a trading instrument but as a foundational asset for capital preservation.
The transition also comes at a time when bitcoin continues to trade below its previous cycle highs, adding significance to the timing of the allocation. Market participants will likely watch how the fully bitcoin backed SAFU performs during periods of volatility and whether other exchanges follow a similar path in restructuring their reserves.
