The exchange announced that it would adjust the asset structure of its Secure Asset Fund for Users, known as SAFU, by gradually converting its initial billion-dollar reserves of stablecoins into Bitcoin. The conversion will be completed within 30 days from the announcement date.
SAFU is Binance’s emergency insurance fund. It exists to protect users if the exchange experiences a security breach or unexpected loss. Binance launched the fund in 2018 and has pledged to keep its value at around $1 billion. Now, instead of holding this value primarily in stablecoins, Binance ties SAFU more tightly to Bitcoin.
Why Binance is transferring SAFU to Bitcoin
Binance says it will regularly review the total market value of the SAFU fund. If Bitcoin price fluctuations cause the fund to fall below $800 million, Binance will add more Bitcoin to bring it back to $1 billion. This rule is designed to keep user protections consistent even during market volatility.
The move reflects a broader shift in how major crypto companies think about reserves. Stablecoins are designed to maintain a stable price, but they depend on issuers, banks and regulators. Bitcoin, on the other hand, has no central issuer and operates on a global network. Binance appears to be betting that Bitcoin’s long-term resilience outweighs its short-term price fluctuations.
– 币安Binance华语 (@binancezh) January 30, 2026
A concrete example helps explain the thought. In 2019, Binance suffered a hack that resulted in a loss of approximately $40 million worth of Bitcoin. At the time, SAFU fully covered losses and users were cured. Since then, the exchange has emphasized transparency on how the fund is managed. SAFU’s move to Bitcoin strengthens the connection between user protection and the most central asset in crypto itself.
What this says about the market today
This decision is also part of a recent trend. Large institutions are increasing their exposure to Bitcoin as a core reserve asset. According to data from Bitcoin Treasuries, publicly traded companies now hold over 300,000 BTC on their balance sheets. At the same time, trust in stablecoins has become more selective, with users paying more attention to how reserves are managed.
Binance has announced that it will adjust the asset structure of its SAFU fund, gradually converting the initial $1 billion stablecoin reserves into Bitcoin reserves, with the conversion expected to be completed within 30 days from the date of this announcement. Binance will regularly review…
-Wu Blockchain (@WuBlockchain) January 30, 2026
Bitcoin volatility is real. Over the past five years, its annualized volatility has averaged around 60%, much higher than traditional assets. Binance’s replenishment rule aims to offset this risk by actively managing the value of the fund. If prices fall sharply, Binance commits to adding more Bitcoin rather than letting the protection weaken.
What users should remember
This change is a sign of confidence. Binance is ready to support the protection of users using Bitcoin and supplement it when the markets become difficult. It also shows how exchanges are adapting as crypto matures, combining transparency, automation and risk management.
Disclaimer
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