The largest cryptocurrency exchange by trading volume, Binance, announced the transfer of its client protection insurance fund SAFU (Secure Asset Fund for Users) from USDC stablecoins to bitcoins.

The company stated that they plan to buy bitcoins using USDC stablecoins over the next 30 days. They also clarified the procedure for replenishing SAFU in the event of a drop in BTC value.

‘If, due to market volatility, the fund's value falls below $800 million, Binance commits to adding bitcoins to restore the total asset amount to $1 billion. The mechanism is intended to guarantee the fulfillment of the fund's primary protective function, despite fluctuations in the BTC rate,’ the exchange promised.

What will happen if the bitcoins purchased with SAFU funds turn a profit, the exchange did not specify. Representatives of Binance called BTC a fundamental asset of the crypto ecosystem and described the company's decision as 'reflecting a strategic viewpoint, not a reaction to short-term price fluctuations in the market.'

SAFU was created in July 2018 to protect client funds on the cryptocurrency exchange in case of emergencies: hacker attacks, failures of the platform itself, and other unforeseen incidents. The formation of SAFU occurs through a percentage allocation from Binance's trading fees — initially, about 10% of the fees were directed to the fund. SAFU is managed by the licensed clearing company Nest Clearing and Custody.

Earlier, the majority owner of Binance, Changpeng Zhao, stated that bitcoin will reach a new historical price maximum this year. The main factor for growth should be changes in American legislation, explained the businessman.