Cryptocurrency trade Binance has transferred roughly $100 million value of Bitcoin from one in every of its sizzling wallets to its Person Security Fund (SAFU), marking an early on-chain step within the trade’s plan to rebuild its person safety reserves round Bitcoin.
Roughly 1,315 BTC was moved in a single transaction from a Binance-labeled sizzling pockets to a recognized SAFU fund tackle early Monday morning, based on blockchain knowledge. This switch was direct and confirmed no indicators of interplay with exterior wallets, suggesting an inner treasury reclassification relatively than a market-facing transaction.
Final week, Binance introduced that it might trade $1 billion value of dollar-pegged tokens for Bitcoin over the subsequent 30 days, and promised to replenish the fund if worth fluctuations drove its worth beneath $800 million.
The announcement sparked hypothesis that the trade might turn out to be a large-scale spot purchaser of Bitcoin.
On-chain exercise on Monday suggests that isn’t the case, no less than for now. This transaction doesn’t signify a stablecoin to Bitcoin conversion. As an alternative, Binance seems to have allotted its current Bitcoin holdings to the SAFU fund, successfully ring-fenced a portion of its current reserves as designated person safety capital.
Nevertheless, this modification introduces a distinct threat profile. The worth of the Bitcoin-backed SAFU fund fluctuates in response to the general market, making Binance’s promise to replenish funds throughout instances of volatility much more vital.
Binance had not publicly commented on the transfer as of Monday European morning.
