Cryptocurrency exchange Binance has transferred approximately $100 million in bitcoin from one of its hot wallets to its Secure Asset Fund for Users (SAFU), marking a first up-chain step in the exchange’s plan to reframe its user protection pool around bitcoin.
Blockchain data shows that around 1,315 BTC moved in a single transaction from a Binance-tagged 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 the internal treasury rather than a market-oriented operation.
Last week, Binance said it would convert $1 billion in 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 swings.
That announcement sparked speculation that the exchange would become a large spot buyer of bitcoins.
Monday’s chain activity suggests otherwise, at least for now. The transaction does not represent a conversion of stablecoins into bitcoins. Instead, Binance appears to be allocating bitcoins it already had to the SAFU fund, effectively protecting some of its existing reserves as designated user protection capital.
However, the change introduces a different risk profile. A SAFU fund backed by bitcoin will fluctuate in value along with the broader market, increasing the importance of Binance’s promise to top it up during periods of volatility.
Binance did not comment publicly on the move until Monday morning in Europe.
