Binance says it should convert its Safe Asset Fund for Customers (SAFU) reserves from stablecoins into bitcoin over the subsequent 30 days, re-denominating the fund into BTC.
What Binance is altering
In an open letter, Binance mentioned the transfer displays its view that bitcoin is a core long-term asset relatively than merely a buying and selling product.
Binance mentioned it should rebalance SAFU again as much as $1 billion if market strikes push its worth under $800 million.
A Binance spokesperson advised Cointelegraph the alternate would use its treasury reserves to high up the fund if it dipped beneath that threshold.
The spokesperson mentioned:
“We are going to use our treasury reserves to high up the SAFU fund if it dipped under $800 million.”
What SAFU is supposed to cowl
SAFU was launched in 2018 and is funded by a portion of Binance buying and selling charges.
Binance describes it as an emergency reserve meant to reimburse customers in “excessive” instances, together with hacks or important platform failures.
In Could 2019, Binance mentioned hackers stole round 7,000 BTC, and the alternate used SAFU to make affected customers entire.
From stablecoins to BTC
Binance beforehand shifted SAFU’s stablecoin element from BUSD to USDC in 2024, following the wind-down of its branded stablecoin.
This newest change removes stablecoins totally and will increase the fund’s publicity to bitcoin worth swings.
Measurement of the conversion
Binance is already a serious bitcoin holder, reporting over 648,000 BTC throughout the alternate.
At present costs, changing $1 billion into BTC would equal greater than 12,000 BTC.
Binance mentioned the BTC could be custodied inside its licensed clearing home regulated by the Abu Dhabi International Market.
The alternate additionally printed an onchain deal with for customers to confirm the SAFU pockets.