Binance, the world’s largest cryptocurrency exchange, has made another huge move.
Accordingly, Binance announced that it will convert its $1 billion SAFU fund from stablecoins to Bitcoin.
It is noteworthy that this move comes while Bitcoin is experiencing sharp declines, and a 30-day period has been set for this transformation.
A $1 Billion Bitcoin Move Amidst the Downturn!
Binance announced in a statement that it will restructure its Secured Asset Fund for Users (SAFU) and gradually convert its $1 billion worth of stablecoin assets into $BTC.
The transformation is planned to be completed within 30 days of the date of this announcement.
Binance will regularly review the asset value of the SAFU Fund. It also added that if the fund’s market capitalization falls below $800 million due to fluctuations in the Bitcoin price, Binance will replenish the fund with additional $BTC to bring it back up to $1 billion.
“…As we value Bitcoin as a fundamental asset in the crypto ecosystem and its long-term value, Binance is willing to share uncertainty with the industry during periods of increased cyclical volatility and continue to invest resources in the crypto ecosystem.”
Therefore, Binance will adjust the asset structure of the SAFU Fund, gradually converting its current $1 billion stablecoin reserves into Bitcoin reserves.
This transformation is planned to be completed within 30 days of this announcement.
Binance will regularly review the asset size of the SAFU Fund. If the SAFU Fund’s market capitalization falls below $800 million due to Bitcoin price fluctuations, Binance will replenish the fund with Bitcoin to bring it back up to $1 billion.
This initiative is part of Binance’s long-term commitment to the industry, and we will continue to advance related work and gradually share further developments with the community.
*This is not investment advice.
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