Binance has executed its first Bitcoin purchase as part of a plan to convert its Secure Asset Fund for Users from stablecoins into BTC, marking a visible shift in how the exchange backs its emergency insurance mechanism during periods of market stress.
On Jan. 30, Binance announced that it would convert SAFU’s roughly $1 billion stablecoin reserves into Bitcoin within 30 days. The exchange also committed to maintaining the fund’s value above $800 million, with a public promise to replenish it back to $1 billion if Bitcoin price movements push it below that threshold.
On Monday, on-chain data showed Binance added 1,315 Bitcoin to SAFU, worth approximately $100.7 million at the time of purchase. The transaction marked the fund’s first Bitcoin acquisition in nearly two years.
JUST IN: @Binance buys $100,000,000 worth of #Bitcoin for its 'SAFU Fund.' pic.twitter.com/Wg6eciDjJh
— HodlFM (@Hodl_fm) February 2, 2026
On-chain data confirms first allocation
Blockchain data cited by LookOnChain and Arkham shows the 1,315 BTC purchase took place as part of the broader conversion plan. According to Blockchain.com data, the Bitcoin was acquired at an average price of $77,409.89 per coin, for a total value close to $101 million.
Binance SAFU Fund just bought 1,315 $BTC($100.7M).https://t.co/WwuOOWlMjj pic.twitter.com/jyGjUtY9bd
— Lookonchain (@lookonchain) February 2, 2026
This transaction represents roughly one-tenth of the total amount Binance plans to convert. The exchange stated that the remaining portion of SAFU will shift from stablecoins to Bitcoin over the next 27 days.
What SAFU is designed to do
SAFU, short for Secure Asset Fund for Users, launched in 2018 as an emergency protection pool funded through 10% of Binance trading fees. The fund exists to cover user losses during extraordinary events such as exchange hacks or operational failures.
As of January 2026, Binance Academy listed SAFU holdings at roughly $1 billion in USDC and published wallet addresses for public verification. In 2024, Binance moved the fund from BUSD into USDC to preserve liquidity and maintain a dollar-pegged value.
The new conversion moves SAFU out of stablecoins altogether and places the fund directly into Bitcoin, which Binance described as “the foundational asset of this ecosystem and the premier long-term store of value.”
A floor promise tied to Bitcoin volatility
Binance stated last week that it will rebalance SAFU if Bitcoin price fluctuations push the fund’s value below $800 million.
“If the fund's market value falls below $800 million due to BTC price fluctuations, Binance will rebalance the fund to restore its value to $1 billion,” the exchange wrote.
At current prices near $84,000 at the time of the announcement, a full $1 billion conversion represents roughly 11,900 BTC. Binance said the conversion will occur gradually, with regular rebalancing and public on-chain visibility.
The structure creates a publicly auditable commitment. Any decline below the $800 million floor would require Binance treasury action during adverse market conditions.
Market stress provides early context
The first SAFU Bitcoin purchase occurred during a period of heightened volatility. Over the weekend, Bitcoin fell to around $74,000, its lowest level since November, before recovering to roughly $76,800 at the time of reporting.
CoinGlass data shows nearly $830 million in liquidations across the crypto market during the last 24 hours. Total crypto market capitalization fell more than 3% to $2.66 trillion.
Credibility pressure and structural criticism
The SAFU conversion follows months of scrutiny over Binance’s market role during periods of stress. On Oct. 10, a liquidation cascade erased roughly $19 billion in leveraged positions across the crypto market.
CoinShares' analysis of that event documented Binance-specific microstructure issues, including extreme price prints, system load warnings, and peg mispricing behavior during the selloff.
Cathie Wood publicly linked one liquidation episode to what she described as a “software glitch” at Binance. While that characterization remains debated, it entered public discourse and amplified concerns about systemic risk tied to dominant trading venues.
Liquidity breakdowns on Binance have historically propagated across the market due to the exchange’s scale.
A volatile backstop under pressure
Insurance mechanisms traditionally prioritize stability during crisis periods. SAFU exists to deploy capital when liquidity disappears and asset prices fall.
By denominating SAFU in Bitcoin, Binance links its user protection pool to the same asset that typically declines during market stress. The fund’s resilience now depends on Binance’s ability to inject capital during drawdowns without delay.
The exchange framed the decision as alignment rather than insulation. Its open letter language emphasized “embracing market cycles” and “standing shoulder-to-shoulder with the industry.”
Whether that commitment holds during deeper stress events remains observable through on-chain data and replenishment behavior.
What comes next
Binance still holds roughly $900 million earmarked for additional Bitcoin purchases as part of the SAFU conversion. The exchange expects to complete the transition within weeks.
Each tranche will provide further insight into how Binance executes its public floor promise during volatile conditions.
Oleksii Shumak
Disclosure: The author reports no ownership of cryptocurrencies or tokens mentioned in this article and has no commercial relationship with Binance or affiliated entities. This article was produced independently, with editorial decisions made without input from Binance, its representatives, or related companies.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice, HODL FM strongly recommends contacting a qualified industry professional.
