What to Know
- Binance SAFU fund added two new approved wallet addresses, signaling possible preparation for more Bitcoin moves.
- The exchange already bought 1,315 BTC (~$100.7M) as part of its $1B reserve shift from stablecoins to Bitcoin.
- Binance plans to complete the full SAFU conversion to Bitcoin within 30 days to maintain user protection reserves.
Binance’s user protection fund is showing fresh on-chain activity as the exchange continues its plan to move $1 billion in reserves into Bitcoin. New blockchain records show that the SAFU fund wallet has updated its approved address list, a step that often comes before large fund movements. The update comes just days after Binance confirmed its first major Bitcoin purchase for the fund in nearly two years.
New Wallet Whitelist Update
On-chain data shows that today, the Binance SAFU Fund address sent an authorization transaction to add two new wallet addresses to its approved recipient whitelist. This whitelist is simply a list of addresses that are allowed to receive funds from the SAFU wallet.
Such changes are usually made before funds are moved or new assets are added. Because this update comes right after Binance began converting SAFU reserves into Bitcoin, analysts believe it may be preparation for further Bitcoin purchases or transfers.
First Bitcoin Purchase Completed
Binance has already completed the first batch of its Bitcoin conversion plan. According to transaction data, the SAFU fund purchased 1,315 Bitcoin worth about $100.7 million.
Binance also confirmed the move in an official progress update, stating that it converted $100 million in stablecoins into Bitcoin as part of the planned $1 billion shift. The exchange shared the SAFU Bitcoin wallet address and transaction details for transparency. This is the first time since 2023 that the SAFU fund has directly added Bitcoin. Over the past two years, the reserve mostly held stablecoins instead of Bitcoin.
What Is the SAFU Fund?
SAFU stands for Secure Asset Fund for Users. Binance created it in 2018 as an emergency protection pool. Its purpose is to cover user losses if unexpected events happen, such as hacks or major technical failures. Think of it like an insurance reserve for users on the exchange.
Binance said last week that it wants the SAFU fund to hold about $1 billion in value. If Bitcoin price swings cause the fund’s value to fall below $800 million, the exchange will add more assets to bring it back up.
Why Binance Is Moving From Stablecoins to Bitcoin
Until now, most SAFU reserves were kept in stablecoins, which are designed to keep a steady price. Binance recently announced it would convert the full $1 billion reserve into Bitcoin over a 30-day period instead.
The exchange described Bitcoin as a strong long-term store of value and said it sees Bitcoin as the base asset of the crypto ecosystem. Buying during a market dip also allows the fund to accumulate more Bitcoin for the same dollar amount. The recent whitelist update suggests that more purchase transactions could be coming soon as part of this conversion process.
Market Conditions
The reserve shift comes during a volatile period for crypto markets. Over the weekend, Bitcoin’s price dropped sharply to around $74,000 before recovering slightly on Monday. At the time of reporting, Bitcoin remains down over the past 24 hours despite the rebound. Retail trader mood also weakened. Sentiment trackers show Bitcoin discussion levels are extremely high, while overall mood recently shifted to extremely bearish.
The broader crypto market fell more than 3% in the last day, and nearly $800 million worth of leveraged positions were liquidated, meaning many traders were forced out of their trades due to losses. Binance’s own token, BNB, also declined by around 2–3% during the same period, with online sentiment staying mostly negative.
Final Thoughts
Binance has said it will continue converting SAFU reserves into Bitcoin over the coming weeks and will keep sharing updates with the community. With the whitelist now expanded and the first $100 million purchase complete, on-chain watchers expect additional SAFU Bitcoin transactions to follow as the $1 billion conversion plan moves forward.
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