Crypto exchange Binance has transferred around $100 million worth of bitcoin from one of its hot wallets to its Secure Asset Fund for Users (SAFU), marking an early chain step in the exchange’s plan to reframe its user protection reserve around bitcoin.
Blockchain data shows that around 1,315 BTC moved in a single transaction from a Binance-branded hot wallet to a known SAFU fund address early Monday. The transfer was direct and showed no signs of interaction with external wallets, suggesting an internal treasury reclassification rather than a market-facing trade.
Last week, Binance said it would convert $1 billion of dollar-pegged tokens into bitcoin over the next 30 days, promising to replenish the fund if its value falls below $800 million due to price fluctuations.
This announcement sparked speculation that the exchange would become a major spot buyer of bitcoin.
Monday’s on-chain activity suggests otherwise, at least for now. The transaction does not represent a conversion of stablecoins to bitcoin. Instead, Binance appears to be allocating bitcoin it already had in the SAFU fund, effectively demarcating a portion of its existing reserves as designated user protection capital.
However, the shift introduces a different risk profile. A bitcoin-backed SAFU fund will fluctuate in value alongside the broader market, adding to the importance of Binance’s promise to top it up during periods of volatility.
Binance did not publicly comment on the move as of European morning time Monday.
