Binance Buys $101M in BTC as It Begins SAFU Reserve Conversion
Why Is Binance Moving SAFU Into BTC?
Binance has begined converting the assets backing its Secure Asset Fund for Users (SAFU) into BTC, executing an initial purchase of 1,315 BTC worth roughly $101 million. The acquisition was completed at an average price of $77,409.89 per coin, according to data from Blockchain.com.
The transaction represents the first step in a broader plan to reallocate the entirety of SAFU’s roughly $1 billion reserves from stablecoins into BTC. Binance said it expects to complete the remaining purchases over the next 27 days, leaving the emergency fund fully denominated in BTC.
SAFU was launched in 2018 as a user protection pool funded through trading fees, designed to act as a financial backstop in the event of hacks or other extreme incidents. A Binance spokesperson said the fund “will continue to be used as a backstop for users in the event of extreme incidents or losses.”
Investor Takeaway
From Stablecoins to BTC: What Changed?
Until now, SAFU has been held in stablecoins rather than . In 2024, Binance moved the fund’s stablecoin exposure from BUSD into USDC, framing the shift as a way to keep reserves liquid and closely aligned with the US dollar.
The latest decision goes further by removing stablecoins from the structure altogether. Once the conversion is complete, SAFU will be fully held in . Binance still has close to $900 million in allocated purchaseing capacity to complete the transition.
For a protection fund, the change is structural. Stablecoins offer price stability and predictable purchasing power, while BTC introduces price swings that can expand or compress the fund’s effective coverage depending on market conditions. That tradeoff places greater emphasis on BTC’s long-term liquidity and resilience rather than short-term price stability.
At the identical time, holding issuers and reserve disclosures, an issue that has remained sensitive across the crypto industry. By anchoring SAFU directly to BTC, Binance is tying user protection to an asset with no issuer risk, but also no price floor.
Why Now, and Why During a Market trade-Off?
The timing of the purchases stands out. Binance’s initial allocation came as crypto markets were dealing with a sharp trade-off that briefly pushed BTC below $75,000. Executing a large purchase during a period of stress suggests the conversion plan was pre-scheduled rather than reactive.
Still, the move places Binance alongside other large purchaviewrs stepping in during recent fragileness. Strategy, led by Michael Saylor, has hinted it may add more BTC later than the identical downturn pushed BTC below its average cost basis. Together, these actions point to continued institutional demand even as retail sentiment remains fragile.
For Binance, the conversion also reframes SAFU as a visible on-chain reserve tied to a widely tracked asset. BTC holdings can be monitored more easily than opaque reserve structures, which may appeal to users who prioritize transparency over stability.
Investor Takeaway
What Does This Mean for User Protection?
In practical terms, SAFU’s protection value will now fluctuate with . During rallies, the fund’s coverage grows in dollar terms. During downturns, its purchasing power shrinks, potentially reducing the buffer available during stress events.
That tradeoff may be acceptable if Binance views BTC as a more durable reserve asset than stablecoins over multi-year horizons. It may also reflect confidence that liquidity, rather than nominal stability, is the critical factor in crisis response.
As the remaining allocations are completed over the coming weeks, attention is likely to focus on how transparently Binance reports SAFU balances and how the fund behaves through future market stress. The decision to hold it entirely in BTC places those dynamics squarely in public view.
