Binance SAFU fund now holds 15,000 BTC after $1B conversion
Binance has finalized a $1 billion stablecoin-to-Bitcoin conversion of its Secure Asset Fund for Users (SAFU), the exchange’s emergency reserve, as reported by FinanceFeeds. The move completes a plan to shift the fund’s backing away from stablecoins and into Bitcoin (BTC).
The latest tranche added roughly 4,545 BTC, bringing the SAFU balance to about 15,000 BTC, according to Coinfomania. The fund’s value will now fluctuate with BTC’s market price rather than remaining near a dollar peg.
Why Binance executed a stablecoin-to-Bitcoin conversion for SAFU
The rationale centers on positioning SAFU in what proponents view as a long-term reserve asset rather than a low-volatility stablecoin basket. Market commentators have described the shift as a signal of conviction in Bitcoin’s role as a reserve, as noted by TheCoinRepublic.
In practice, stablecoins reduce near-term volatility but introduce counterparty and peg risks, while Bitcoin increases price variability yet removes reliance on centralized issuers. The trade-off suggests a strategic tilt toward asset sovereignty and long-horizon protection for an emergency reserve.
Leadership has framed the move in long-term terms before and after the conversion. “Could be wrong, but I have a feeling it might work out pretty well for the SAFU fund in the end,” said Changpeng “CZ” Zhao, co-founder of Binance.
Immediate impacts: volatility exposure, $800M rebalancing safeguard, user protection
Putting SAFU fully in BTC directly links the fund’s dollar value to Bitcoin’s price path, which can amplify swings in stressed markets. To address drawdowns, Binance has committed to rebalancing the reserve if it falls below $800 million, as reported by BanklessTimes.
Operationally, the SAFU structure remains an emergency reserve intended to protect users during extreme market events. The conversion does not alter the fund’s purpose; it changes the asset backing and the associated volatility profile.
At the time of this writing, Bitcoin traded near $66,031 with very high 11.72% measured volatility and bearish sentiment, based on data from Coin360. These conditions underscore that the fund’s nominal value can fluctuate in step with BTC.
How to verify the Binance SAFU wallet and proof of reserves
According to Crypto.news, Binance has publicly disclosed the SAFU wallet address and transaction data, enabling on-chain verification as part of its proof-of-reserves framework. The disclosure is intended to demonstrate segregated funds and auditable holdings at the address level.
To verify, review the disclosed SAFU wallet on a reputable block explorer and confirm inbound BTC transfers that align with the reported conversion timeline and amounts. Then cross-check Binance’s published proof-of-reserves materials, typically including Merkle-tree liabilities and asset holdings, to ensure SAFU balances are segregated from operating wallets and align with the on-chain address. As with any crypto reserve denominated in BTC, the dollar value of the SAFU fund will vary with market prices.
| Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing. |
