Crypto exchange Binance has moved around $100 million worth of bitcoin from one of its hot wallets to its Secure Asset Fund for Users (SAFU), marking a first step in the chain of the exchange’s plan to reframe its user protection pool around bitcoin.
Blockchain data shows that approximately 1,315 BTC were transferred in a single transaction from a Binance-labeled hot wallet to a known SAFU fund address early Monday. The transfer was direct and showed no signs of interaction with external wallets, suggesting a reclassification of internal cash rather than a market-oriented transaction.
Last week, Binance announced that it would convert $1 billion of dollar-pegged tokens into Bitcoin over the next 30 days, pledging to replenish the fund if its value fell below $800 million due to price fluctuations.
The announcement sparked speculation that the exchange would become a major one-time buyer of Bitcoin.
Monday’s on-chain activity suggests otherwise, at least for now. The transaction does not represent a conversion from stablecoins to bitcoin. Instead, Binance appears to be allocating the bitcoins it already held to the SAFU fund, effectively ring-fencing a portion of its existing reserves as designated user protection capital.
This change, however, introduces a different risk profile. The value of a bitcoin-backed SAFU fund will fluctuate based on the market as a whole, increasing the importance of Binance’s promise to replenish it during periods of volatility.
Binance did not publicly comment on the move Monday morning in Europe.
